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Nortd Carolina Sla»e Ubrary 
Ratligh 

STATE OF NORTH CAROLINA 

FIRST REPORT 



OF THE 



UTILITIES COMMISSION 



FOR THE 



BIENNIAL PERIOD, 1935-1936 



COMPILATION FROM RAILROAD RETURNS ARE FOR 
YEARS ENDING DECEMBER 31, 1934 AND 1935 



RALEIGH 

Capital Printing Company 

1937 



/ 



UTILITIES COMMISSION 

STANLEY WINBORNE, Commissioner 

Associate Commissioners 
F. L. SEELY, Asheville FRANK W. HANFT, Chapel Hill 

R. O. self. Chief Clekk MARY SHAW, Stenographer 

ELSIE G. RIDDICK, Assistant Chief Clerk NANCY LINK, Reporter 

EDGAR WOMBLE, Utii.ities Clerk LOUISE GRAY, Stexographek 



RATE DEPARTMENT 

W. G. "WOMBLE, Director of Railroad Traxsportatiox 

C. H. NOAH, Assistant Director of Railroad Transportation 



CAPITAL ISSUES DEPARTMENT 

STANLEY WOHL, Capital Issues Clerk 
SOPHIA P. BUSBEE, Stenographer 



[.? ] 



LETTER OF TRANSMITTAL 

December 11, 1936. 
His Excellency, J. C. B. Ehkinghaus, 
Governor of North Carolina, 
Raleigh, North Carolina. 

Sir: — As required by Section 1065, Chapter 21, Consolidated Stat- 
utes, I bave the bonor to report for tbe past biennium as follows : 

At tbe last session of tbe General Assembly tbe inventories of utility 
property in tbe State bad not been completed. Tbat was a tremendous 
task, but complete itemized copies of tbe properties of eacb major util- 
ity are now on file in tbis office. Tbis information was mucb needed 
and bas already proven its value in connection witb our rate reductions 
affecting every utility of consequence and bas saved tbe rate payers 
during tbe past four years more than $6,000,000 per annum. Tbis gen- 
eral rate adjustment downward is still under way and it is hoped that 
tbe public will receive still greater benefits as soon as we bave had time 
to complete studies now in progress. 

It should be borne in mind that it is the duty of this Commission to 
require efficient and adequate service as well as to protect consumers 
against exorbitant rates. Therefore, rates should not be reduced to a 
level that will impair service and destroy the hope of a healthy expan- 
sion to meet the growth of the community. 

The products of these utilities enter so fully into the development of 
the State that they have become essential to the welfare and convenience 
of the public and where tbe service is adequate and the rates reason- 
able, the mutuality of interest is inseparable. The seven major elec- 
tric power companies have built, have under construction, or have au- 
thorized more than three thousand miles of rural lines during the past 
twelve months. 

Data upon which the first reductions were made were easily obtained 
compared to that which now faces us. Much of the future reductions 
will probably depend upon the minute and expensive valuations and 
probable court cases. For this reason, your Budget Department has 
been asked to continue the appropriation which has been available for 
the past biennium. 

Except as to certain limited areas, probably more important to more 
people and to industry at this immediate time is reduction in rail 
freight rates. Certain discriminations still exist which must be ad- 

70180 



4 ^. C. Utilities Commission 

indicated to the point where our merchants and manufacturers can con- 
tinue their businesses without facing the world markets with all the 
odds favoring their competitors. While we cannot say that we are sat- 
isfied with all that has been accomplished in electric, gas and telephone 
reductions, the administration of this department is pledged to the vig- 
orous prosecution of the elimination of rail freight discriminations dur- 
ing the next two years. Some small victories, to this end, have already 
been won and much ground work has been laid and it is believed that 
now is the most opportune time that we have had in years to aggres- 
sively present our case for the purpose of obtaining the goal which we 
seek. The struggle has been long and arduous and it is believed that 
this is the proper time to go into this matter and for that reason I am 
asking an appropriation of $25,000 per annum to be used for this pur- 
pose to be spent at the discretion of the Commissioner. If it becomes 
necessary to go into the courts, it is my opinion that $25,000 will not 
be a sufficient amount, but that should be sufficient to make the pre- 
liminary preparations and at least begin the cases and bring them up 
to a point where, if it appears worthy of pursuit, additional funds may 
be provided either by additional appropriations by the Legislature or 
by the Governor from the emergency fund. This matter will be dis- 
cussed with the Governor in order that our program may be combined 
with his policies on this subject. 

Our fine highway system has formed the basis for development of a 
very fine passenger and freight motor vehicle service in the State. Our 
passenger operators have extended their lines until it is possible to 
obtain transportation almost hourly between all our principal cities 
and the principal cities of adjoining states. Interline tickets may be 
purchased to almost any point in the United States. Our union bus sta- 
tions are organized upon an economical basis and their operation has 
eliminated much confusion in addition to providing convenience to the 
traveling public, but the condition of many of these stations from the 
standpoint of adequacy of size, comfort and sanitation is still suscepti- 
ble of much improvement. The location of these stations within the 
cities and towns is left to local traffic authorities. Rental rates and 
traffic routes play an important part in determining these locations. 

We are very much interested in the development of motor freight 
service for the State, which is now used largely by both the manufac- 
turers and the consuming public. The enactment of the Motor Vehicle 
Law by the Federal Government has considerably increased our work 
and will probably reveal that many more carriers are subject to our 
tax laws than we have been able to apprehend prior to the passage of 



Letter of Transmittal 5 

tlie Federal Act. We expect this to result in much additional revenue 
to the State for the reason that they have been previously operating 
under the reciprocity act as contract carriers when in fact they were 
common carriers and not subject to the reciprocity provisions of our 
law. 

The Commission desires to acknowledge with appreciation the valu- 
able assistance and hearty co-operation of all the traffic experts of the 
State who are connected with individual corporations, firms or associa- 
tions and, particularly the l^orth Carolina Traffic League and its mem- 
bership composed of representatives of the above named bodies. 

Your attention is respectively invited to the statistics contained in 
this report, as these reveal the condition of the utility business gener- 
ally which performs so important a function in the employment of our 
citizens and furnishes the greatest inducement which we have to offer 
for the location and establishment of additional industry within our 
borders. 

Respectfully submitted, 

Stanley Winborne, 

Utilities Commissioner. 
Attest : 

R. 0. Self, Chief Clerl. 



BIENNIAL REPORT 

OF THE 

CAPITAL ISSUES DIVISION 

TO THE 

NORTH CAROLINA UTILITIES COMMISSION 

Honorable Stanley Winborne, 
North Carolina Utilities Commission, 
Raleigh, North Carolina. 

Dear Mr. Commissioner: 

Forwarded herewith is the biennial report of the Capital Issues Division. 
Chapter 149 of the Public Laws of 1927, "An Act to Provide .Laws Govern- 
ing the Sales of Stocks, Bonds and Other Securities in North Carolina," re- 
quires that annual registration and renewal fees be paid by regularly licensed 
dealers and salesmen; and that filing and registration fees be paid by ap- 
plicants for registration of securities; all fees so collected by the Commis- 
sioner of Securities to be paid over to the State Treasurer to go into the 
general fund: 

Receipts and Disbursements 

January 1st, 1935, to November 30th, 1936 

Receipts (llmos.) 

License Fees: 1935 1936 

Dealers ($50) $ 2,050.00 $ 2,450.00 

Salesmen ($10) 2,190.00 1,940.00 

Filing Fees 275.00 190.00 

Registration Fees 6,854.59 5,780.84 

Total receipts $11,369.59 $10,360.84 

Expenditures 

Personal Service: 

Director $ 1,290.00 $ 1,400.00 

Steno-Clerk 1,155.00 1,147.00 

Supplies, Printing, Postage, Telephone, Tele- 
graph, etc. (est) 80.00 70.00 



Total expenditures $ 2,525.00 $ 2,617.00 

Recapitulation 

January 1st, 1935, to November 30th, 1936 

Total receipts $21,730.43 

Total expenditures 5,142.00 



Excess of receipts $16,588.43 

Respectfully, 

Stanley S. Wohl, 

Director, Securities Division 
Raleigh, N. C, December 16, 1936. 

[6] 



GENERAL ORDERS 

UTILITIES COMMISSION OF THE STATE OP NORTH CAROLINA 

RALEIGH 
HAND SET CHARGES 
Ordek U-11 
This Commission having limited the extra monthly charge for handsets to 
a period of eighteen months in its Order, Docket 88, in the case of the South- 
ern Bell Telephone and Telegraph Company, this Commission is of the opin- 
ion that this restriction should apply to all telephone exchanges in the State; 
therefore. 

It is ordered. That all telephone companies operating under the jurisdic- 
tion of this Commission are hereby cited to appear in the office of the Com- 
mission on or before December the 29th, at 10 o'clock a. m., to show cause, 
if any, why the differential charge now made on hand sets should exceed 
twenty-five cents per month for a period of eighteen months, and thereafter 
no extra charge; and 

Further, That any subscriber who has paid an extra charge for this type 
of instrument for eighteen months or more shall cease to pay any differential 
over the standard rates prescribed by this Commission, effective January 1, 
1935. 

Further, That in the event any utility to which this order applies is in 
accord with the order, and does not care to make appearance, it may file with 
the Commission its written declaration that it will conform to the provisions 
of the order and this declaration shall become a part of its schedule of rates 
now on file with the Commission. 

Stanley Winborne, 

VtiUties Commissioner. 
By order of the Commission: 
(Seal) R. 0. Self, Chief Clerk. 
Raleigh, N. C, December 14, 1934. 
Docket No. 1. 

State of North Carolina 
Utilities Commission 

IN THE MATTER OF RATES, ROUTINGS, RULES AND REGULATIONS 

GOVERNING THE TRANSPORTATION OF FREIGHT. 
Ex-parte Order No. U-12 

Recognizing the action of the 1935 General Assembly in amending Section 
1107 of the Consolidated Statutes, relative to routing of freight by railroad 
carriers in intra-state traffic, the Commission is of the opinion that its Rules 
of Practice and Procedure should be amended to conform to the amended 
law. It is, therefore. 

Ordered, That there be inserted in the Rules of Practice and Procedure of 
this Commission a new rule hereby designated as Rule 9-A, which rule shall 
read as follows: 

"All proposed changes in rates, routings, rules and regulations governing 
the transportation of freight in intra-state traffic must be submitted to this 

[7] 



8 I^. C. Utilities Commission 

Commission in writing, and such proposals shall set forth in full the change 
or changes proposed and the reason or reasons therefor and shall not be- 
come effective except by authority of this Commission." 
This the 20th day of June, 1935. 

Stanley Winborne, 

Utilities Commissioner. 
Attest: 

R. O. Self, Chief Clerk. 
Docket No. 1. 

State of North Carolina 

Utilities Commission 

Raleigh 

IN THE MATTER OF RATES, ROUTINGS, RULES AND REGULATIONS 
GOVERNING THE TRANSPORTATION OF FREIGHT. 

Ex-PARTE Order No. U-13 

(Cancels Ex-parte Order No. U-12) 

It is the opinion of the Commission that Rule 9-A of its Rules of Practice 
and Procedure, prescribed in its order dated June 20, 1935, is in conflict with 
the provisions of the law contained in Section 16, Chapter 134, of the Pub- 
lic Laws of 1933 ; 

It is, THEREFORE, ORDERED, That Said Rule 9-A of the Commission's Rules of 
Practice and Procedure be and the same is hereby cancelled and that the fol- 
lowing Rule 9-B be substituted therefor: 

"All proposed changes in rates, routings, rules and regulations governing 
the transportation of freight in intra-state traffic must be submitted to this 
Commission in writing, and such proposals shall set forth in full the change 
or changes proposed." 

This 8th day of January, 1936. 

By order of the Commissioner: 

Stanley Winborne, 

Utilities Commissioner. 

Attest : 

(Seal) R. O. Self, Chief Clerk. 

Docket No. 632. 



DECISIONS AND ADJUSTMENTS OF COMPLAINTS 
Electric Light, Gas and Power Companies 

IN RE: PETITION OF CAROLINA POWER AND LIGHT COMPANY FOR 
BUS FARES FOR SCHOOL CHILDREN IN THE CITY OF ASHEVILLE, 
NORTH CAROLINA. 

Order 

This cause coming to be heard on this, the 10th day of September, 1935, 
at 11 o'clock A. M., upon the petition of the Carolina Power and Light Com- 
pany, and it appearing to the Commissioner, and the Commissioner finding 
as facts that: 

1. On the 15th day of August, 1935, the Carolina Power and Light Com- 
pany filed a petition with the North Carolina Utilities Commissioner in the 
above entitled matter, and that the Commissioner thereupon made an order 
providing for a hearing upon the petition at 11 o'clock a. m. on Tuesday, 
September 10, 1935, and caused notice of said hearing to be published in the 
Asheville Citizen-Times, a newspaper published, and having general circula- 
tion within the City of Asheville and vicinity; that said notice was pub- 
lished in the issue of said paper of August 18th and August 25th, as follows: 

Notice of Hearing Before Utilities Commissioner 

"Please take notice that a hearing will be held in the office of the 
North Carolina Utilities Commissioner in Raleigh, on September 10, 
1935, at eleven (11) o'clock a. m., upon the petition of Carolina Power 
and Light Company, asking that the two and one-half cents (2i^c) bus 
fare now charged in the City of Asheville for the transportation of school 
children be continued and made applicable to school children attending 
the public schools within the city during the regular school terms and 
limited to transportation to and from school. 

"Anyone desiring to be heard with respect to this matter may file their 
approval or objections or appear in person at the time and place above 
stated. 

"This 16th day of August, 1935. 

"R. O. Self, Clerk." 

2. That no answer to said petition has been filed and no person has ap- 
peared before the Commissioner pursuant to the aforesaid notice, to protest 
or oppose the granting of the relief prayed for in the petition. 

3. That the order made on September 25, 1919, by the North Carolina Cor- 
poration Commission, predecessor of the North Carolina Utilities Commis- 
sion, provided that the Asheville Power and Light Company, predecessor of 
the Carolina Power and Light Company, be authorized to charge two and one- 
half cents (2l^c) for the transportation of school children over its lines in 
the City of Asheville; that the said fare of two and one-half cents, prescribed 
by said order, was intended to be applicable only to children attending the 
public schools of the City of Asheville during the regular term of said 
schools, and limited to the transportation of such children to and from 
school; and, for the purpose of clarifying said order. 

It is hereby ordered and adjudged, That the provisions contained in the 
aforesaid order of September 25, 1919, with respect to the fare to be charged 
by Carolina Power and Light Company for the transportation of school chil- 

[9] 



10 ]Sr. C. Utilities Commission 

dren as passengers over its lines within the City of Asheville, be and the 
same are hereby modified and amended so that from and after the date of 
this order, the said Carolina Power and Light Company shall be and is hereby 
authorized to charge two and one-half cents (2i/4c) for the transportation 
each way of children who are enrolled as pupils of, and attending, the pub- 
lic schools of the City of Asheville during the period of each year of the 
regular term or terms of such schools; and transportation of school children 
at the fare of two and one-half cents (2i/^c) each way shall be limited to the 
transportation of such children to and from school. 

Except as herein modified, the aforesaid order of September 25, 1919, shall 
continue in full force and effect. 

Let the cost of this proceeding be taxed against the Carolina Power and 
Light Company. 

This 10th day of September, 1935. 

Stanley Winborne, 

North Carolina Utilities Commissioner. 

Attest: 

R. 0. Self, Clerh. 

Docket No. 508. 

IN THE MATTER OF ESTABLISHING A SPECIAL PARE FOR TRANS- 
PORTATION OF LEE H. EDWARDS HIGH SCHOOL STUDENTS OVER 
THE NOW EXISTING TRANSPORTATION SYSTEM OF CAROLINA 
POWER AND LIGHT COMPANY IN THE CITY OF ASHEVILLE WHEN 
SUCH SERVICE IS SUPPLEMENTED BY SPECIAL MOTOR BUSES 
OPERATING TO SAID SCHOOL UNDER PERMITS FROM THE CITY 
OF ASHEVILLE. 

Order 

This cause coming on to be heard on this, the 9th day of December, 1935, 
at 11 o'clock A. M., upon the petition of the City of Asheville and the Caro- 
lina Power and Light Company, and it appearing to the Commissioner, and 
the Commissioner finding as facts that: 

1. On the 22nd day of November, 1935, the City of Asheville and the Caro- 
lina Power and Light Company as co-petitioners, filed a petition with the 
North Carolina Utilities Commissioner in the above entitled matter, and 
that the Commissioner thereupon made an order providing for a hearing 
upon the petition at 11 o'clock a. m., on the 9th day of December, 1935, and 
caused notice of said hearing to be published in the Asheville Citizen-Times, 
a newspaper published and having general circulation within the City of 
Asheville and vicinity; that said notice was published in the issues of said 
paper of November 24th and of November 27th, as follows: 

Notice OF Hearing Before Utilities Commissioner 

"Please take notice that a hearing will be held in the office of the 
North Carolina Utilities Commissioner in Raleigh, on the 9th day of 
December, 1935, at 11 o'clock a. m., upon the petition of the City of Ashe- 
ville and the Carolina Power and Light Company, asking for the estab- 
lishment of a special fare of five cents (5c), obtained through the pur- 
chase of special tickets in books of twenty (20) each, for transportation 
of Lee H. Edwards High School students over the now existing trans- 



Decisions and Adjustments of Complaints 11 

portation system of Carolina Power and Light Company in the City of 
Asheville when such service is supplemented by special motor buses op- 
erating to and from said school under permit from the City of Asheville. 
"Anyone desiring to be heard with respect to this matter may file 
their approval or objections, or appear in person at the time and place 
stated. 

"This 22d day of November, 1935. 

"R. 0. Self, Clerk:' 

2. That no answer to said petition has been filed and no person has ap- 
peared before the Commissioner pursuant to the aforesaid notice to protest 
or oppose the granting of the order prayed for in the petition. 

3. That the petitioners, City of Asheville and Carolina Power and Light 
Company, have entered into an agreement, evidenced by the exhibits at- 
tached to said petition and subject to the approval of the North Carolina 
Utilities Commission, providing for the issuance of individual permits for 
the operation of motor buses to the Lee H. Edwards High School on Mc- 
Dowell Street, in the City of Asheville, during stated intervals immediately 
before and immediately after each daily school session, over and along cer- 
tain designated streets in the City of Asheville, which said permits are to be 
issued in accordance with the provisions of Chapter 252 of the Public Local 
Laws of North Carolina, 1933, and which buses operating under said permits 
shall connect with and supplement the present motor bus transportation 
system of said Company in said City. 

4. That, as shown by the said exhibits, said City of Asheville and said Caro- 
lina Power and Light Company have agreed that as compensation to Carolina 
Power and Light Company for establishing and operating this special bus 
transportation service for the students of the said Lee H. Edwards High 
School as a supplement to its present motor bus transportation system, trans- 
portation on these special school buses, and on the buses of Company's ex- 
isting lines connecting therewith, for one continuous trip to or from said 
school, shall be obtained by students of the Lee H. Edwards High School by 
the presentation of special school tickets that shall be sold by the Company 
to certified students of the said Lee H. Edwards High School *for five cents 
(5c) each, in books containing twenty (20) tickets. That transfers to and 
from these McDowell Street buses to and from other buses on Company's 
city-wide transportation system shall be issued at no additional cost, and 
that others not entitled to this special school fare shall be transported on 
the buses which shall operate under said permits at the regular six-cent 
(6c) fare with the usual transfer privileges. 

5. That said agreement providing for said books of tickets on the basis of 
the five-cent (5c) fare for one continuous trip on buses to be operated under 
said permits granted by the City, connecting by transfer to or from the buses 
of Company's existing lines connecting therewith in said City, is to the best 
interest of the public and is warranted in the promotion of the public neces- 
sity and convenience. 

It is hereby ordered and adjudged, That transportation over the now ex- 
isting bus transportation system of petitioner, Carolina Power and Light 
Company, in the City of Asheville, when supplemented by special school 
buses operating under permits granted by the City of Asheville, to and from 



12 N. C. Utilities Commission 

said Lee H, Edwards High School, sliall be obtained by students of said 
school by the presentation of special school tickets that shall be sold by the 
Company to certified students of said school for five cents (5c) each, in 
books containing twenty (20) tickets, and that petitioner, Carolina Power 
and Light Company, is authorized, during the term of said permits to be 
granted it by petitioner. City of Asheville, or any renewal thereof or any 
subsequent permit or permits, to transport the said students over the lines 
of said Company's now existing transportation system in the said City upon 
the presentation of said special school tickets to be purchased from Com- 
pany as aforesaid; to issue transfers to said special school buses; and, fur- 
ther, to accept from said students transfers issued on the special school 
buses for transportation over lines of Company's now existing transporta- 
tion system in said City; and, further, that others not entitled to this spe- 
cial school fare shall be permitted to transfer to and from Company's now 
existing transportation system in said City and the said special school buses 
at the regular now existing six-cent (6c) fare, all in accordance with the 
agreement arrived at between petitioners. 

Let the cost of this proceeding be taxed against the Carolina Power and 
Light Company. 

This 9th day of December, 1935. 

Stanley Winborne, 

North Carolina Utilities Commissioner. 
Attest : 

(Seal) R. 0. Self, Chief Clerk. 
Docket No. 614. 

IN RE: CAROLINA POWER AND LIGHT COMPANY'S MEREDITH COL- 
LEGE BUS LINE 

Order 

In a proceeding before the North Carolina Public Utilities Commissioner 
entitled, "In re: Petition for Five-Cent Bus Fare Between Points in Raleigh 
and Meredith College and Intervention Petition for the Extension of the 
Five-Cent Fare Zone to Dixie Trail," an order was made by the Commissioner 
on December 23, 1933, requiring the Carolina Power and Light Company to 
inaugurate a five-cent fare upon its Meredith College bus line between any 
point within the City of Raleigh and the Western limits of the City where 
it crosses Hillsboro Street, and granted to the Carolina Power and Light 
Company the right to continue to charge an additional fare of five cents 
from the aforesaid western limits of the City to Meredith College or any in- 
tervening point. 

On this the 26th day of September, 1936, W. H. Weatherspoon, represent- 
ing the Carolina Power and Light Company, and Dr. C. E. Brewer, repre- 
senting Meredith College, appeared before the Commissioner and stated that 
conferences have been held between the representatives of the Company 
and representatives of the College for the purpose of further discussing and 
considering the matter of inaugurating a five-cent fare from any point within 



Decisions and Adjustments of Complaints 13 

the City of Raleigh to Meredith College, and intervening points, over the 
Carolina Company's Meredith College bus line. 

The Company contends that its bus operations in the City of Raleigh con- 
tinue to be unprofitable, but that the Company is willing to cooperate with 
the College and with citizens residing along the Hillsboro Road between the 
City limits and the College, provided that any cooperative plan will not, after 
a fair trial, prove burdensome to the Company or increase its losses or make 
more remote the possibility of earning a reasonable return upon its bus 
system. In order to try to inaugurate a five-cent fare to Meredith College 
and to render an improved service without casting a burden upon the Com- 
pany, it has been agreed between the Company and representatives of the 
College that the Company, as an experiment for a period of sixty (60) days, 
will immediately inaugurate a five-cent fare from any point within the City 
of Raleigh to Meredith College or to any point between the western limits 
of the City and Meredith College and that if, at the end of the sixty days 
period, the operations of the Meredith bus line and the revenues therefrom 
are not satisfactory or tend to make the Company's Raleigh bus operations 
more unprofitable, or to make more remote the possibility of earning a rea- 
sonable return upon its bus system, the Company shall have the right to 
abandon any improvements in the service which it now proposes to put into 
effect, and it shall have the right to discontinue the five-cent fare to Meredith 
College and to again charge an additional fare from the Western limits of 
the City to Meredith College or to any intervening point; and the Commis- 
sioner has been requested to approve the experiment as agreed upon be- 
tween the Company and representatives of the College. 

After due consideration of the matter, which is in the nature of an ex- 
parte proceeding, but which may be set down for a public hearing upon de- 
mand from any member of the public affected by the order, the Commissioner 
is of the opinion that the agreement as hereinbefore outlined should be ap- 
proved; and, 

It is, therefore, ordered, adjudged and decreed, That said agreement is in 
all respects hereby approved, and Carolina Power and Light Company is 
authorized to inaugurate a five-cent fare over its Raleigh bus system from 
any point within the City of Raleigh to Meredith College or to any point be- 
tween the western limits of the City and Meredith College, and is further 
authorized to make such improvements in its service and in the frequency 
of the bus schedule as it may see fit. Said five-cent fare and such improve- 
ments in service and in frequency of schedules as may be made may be dis- 
continued on and after December 1, 1936, if the said five-cent fare and the 
changes in service and schedules are at that time unsatisfactory or tend 
to make the operation of the Company's Raleigh bus system more unprofit- 
able or to make more remote the possibility of earning a reasonable return 
upon its bus system. 

The approval of the agreement by the Commissioner and the making of 
this order shall be without prejudice to the right and authority of the Com- 
missioner to exercise any jurisdiction he may have with respect to the serv- 
ice and fares charged in the operation of the said Company's transportation 



14 ^. C. Utilities Commission 

system or in any manner estop the Commissioner at any time from inquir- 
ing into the operations, revenues and expenses of the Company, and to make 
such orders with respect to the service and fares as the Commissioner is 
authorized to make. 

This 26th day of September, 1936. 

Stanley Winborne, 

North Carolina Utilities Commissioner, 
We consult: 

(S) W. H. Weatherspoon for Carolina Power and Light Co. 
(S) Chas. E. Brewer for Meredith College. 
Docket No. 845. 

IN THE MATTER OF THE SUBSTITUTION OF A MOTOR BUS ROUTE 
IN PLACE OF A PORTION OF THE ELECTRIC STREET RAILWAY 
LINES NOW BEING OPERATED BY DUKE POWER COMPANY IN 
THIRD AND FOURTH WARDS IN THE CITY OF CHARLOTTE. 

Order 

This cause coming on to be heard before the Utilities Commission of the 
State of North Carolina, and being heard at 11 o'clock, a. m., on March 20, 
1936, the Commission finds the following facts: 

1. The Duke Power Company, a public service corporation, duly filed with 
the Commission its petition in the above entitled matter on March 6, 1936, 
and the Commission on said date duly made and entered its Order directing 
that a public hearing on said petition be held at the office of the Commis- 
sion in the State Department Building, at the corner of Edenton and Salis- 
bury streets in the City of Raleigh, at 11 o'clock a. m., on the 20th day of 
March, 1936, and that notice of said hearing be given to the public by pub- 
lication in three consecutive issues of the Charlotte Observer and the Char- 
lotte News, newspapers regularly published in the City of Charlotte. Pur- 
suant to said order, notice of said hearing was duly published in the Char- 
lotte 01)se7-ver and in the Charlotte News on March 8th, 9th and 10th, 1936. 

2. The petitioner, Duke Power Company, now owns and operates, and for 
a number of years it and its predecessor. Southern Public Utilities Company, 
has owned and operated the street railway system in the City of Charlotte 
under a franchise from said City. One of the lines of street railway owned 
and operated by petitioner in said City is known as its Third Ward line, 
which line in part extends from the intersection of Tryon and Morehead 
Streets, along Tryon Street to Bland Street; thence along Bland Street to 
Mint Street; thence along Mint Street to First Street; thence along First 
Street to Tryon Street. One of the lines of street railway owned and oper- 
ated by petitioner in said City is known as its Fourth Ward line, which line 
in part extends from the intersection of Pine and Tenth Streets; thence 
along Pine Street to Eleventh Street; thence along Eleventh Street to Gra- 
ham Street; thence along Graham Street to Trade Street. 

3. The City Council of the City of Charlotte, at a regular meeting of said 
Council on the 11th day of March, 1936, adopted a resolution authorizing 



Decisions and Adjustments of Complaints 15 

petitioner to abandon the street railway service now being operated by it 
over those portions of its Third Ward line and of its Fourth Ward line here- 
inabove referred to, and by said resolution authorized said Duke Power Com- 
pany to substitute in the place of said street railway service, the following 
bus route, to -wit: 

Extending from "The Square" (Trade and Tryon Streets) along North 
Tryon Street to Keswick Avenue; thence along Keswick Avenue to 
Hutchison Avenue; thence along Hutchison Avenue and Graham Street 
to Eight Street; thence along Eighth Street to Tryon Street; thence 
along Tryon Street to West Boulevard; thence along West Boulevard to 
Mint Street; thence along Mint Street to West Park Avenue; thence 
along West Park Avenue to Wilmore Drive; thence along Wilmore 
Drive to Dowd Road; thence along Dowd Road to Mint Street; thence 
along Mint Street to First Street; thence along First Street to Tryon 
Street; thence along Tryon Street to "The Square." 

4. The abandonment of said street railway service and the substitution in 
place thereof of the motor bus route hereinbefore described will materially 
improve the transportation system and service in the entire City of Char- 
lotte, and will improve and materially extend said system throughout the 
Third and Fourth Wards of the City, and will be in the interest of public 
convenience; and the operation of said motor bus route, after the abandon- 
ment of said street railway service, will be a public necessity. 

5. No objection was filed with the Commission to the abandonment of 
said street railway service and the establishment of said motor bus route 
in place of same. 

It is, therefore, ordered. That petitioner, Duke Power Company be, and it 
hereby is authorized to abandon the street railway service known as a portion 
of its Third Ward line, extending from the intersection of Tryon and More- 
head Streets, along South Tryon Street to Bland Street; thence along Bland 
Street to Mint Street; thence along Mint Street to First Sreet, and thence 
along First Street to Tryon Street, and to abondon the street railway serv- 
ice known as a portion of its Fourth Ward line, extending from the inter- 
section of Pine and Tenth Streets, along Pine Street to Eleventh Street; 
thence along Eleventh Street to Graham Street, and thence along Graham 
Street to Trade Street, and to substitute in place of said street railway 
service the following bus route, to-wit: 

Extending from "The Square" (Trade and Tryon Streets) along North 
Tryon Street to Keswick Avenue; thence along Keswick Avenue to 
Hutchison Avenue; thence along Hutchison Avenue and Graham Street 
to Eighth Street; thence along Eighth Street to Tryon Street; thence 
along Tryon Street to West Boulevard; thence along West Boulevard 
to Mint Street; thence along Mint Street to West Park Avenue; thence 
along West Park Avenue to Wilmore Drive; thence along Wilmore Drive 
to Dowd Road; thence along Dowd Road to Mint Street; thence along 
Mint Street to First Street; thence along First Street to Tryon Street; 
then along Tryon Street to "The Square," which bus route is hereby es- 
tablished as a bus route and is to be operated as a part of the transpor- 
tation system of petitioner in the City of Charlotte. 



... '^.^A^ 

16 J^. C. Utilities Commission 

'It is further ordered, That petitioner be, and it hereby is granted a cer- 
tificate of public convenience and necessity for the operation of said motor 
bus route. 

By order of the Utilities Commission of the State of North Carolina. 
This the 20th day of March, 1936. 

Stanley Winborne, 

Utilities Commissioner. 
Attest: 

(Signed) R. 0. Self, Chief Clerk. 
Docket No. 680. 

IN THE MATTER OF THE SUBSTITUTION OP A MOTOR BUS ROUTE 
IN PLACE OF THE ELECTRIC STREET RAILWAY LINES NOW BE- 
ING OPERATED BY DUKE POWER COMPANY ON EAST MOREHEAD 
STREET, ON DILWORTH ROAD, AND ON OTHER STREETS IN DIL- 
WORTH AND IN FOURTH WARD IN THE CITY OF CHARLOTTE. 

Order 

This cause coming to be heard before the Utilities Commission of the 
State of North Carolina, and being heard at 11 o'clock a. m., on June 15th, 
1936, the Commission finds the following facts: 

1. The Duke Power Company, a public service corporation, duly filed with 
the Commission its petition in the above entitled matter on June 3rd, 1936, 
and the Commission on said date duly made and entered its order, directing 
that a public hearing on said petition be held at the office of the Commission 
in the State Department Building at the corner of Edenton and Salisbury 
Streets, in the City of Raleigh, at 11 o'clock a. m., on the 15th day of June, 
1936, and that notice of said hearing be given to the public by publication in 
three (3) consecutive issues of the Charlotte Observer and Charlotte Neios, 
newspapers regularly published in the City of Charlotte. Pursuant to said 
order, notice of said hearing was duly published in the Charlotte Observer 
on June 5, 6, and 7, and in the Charlotte News on June 4, 5, and 6, 1936. 

2. The petitioner, Duke Power Company, now owns and operates, and for 
a number of years it and its predecessor, Southern Public Utilities Com- 
pany, has owned and operated the street railway system in the City of Char- 
lotte under a franchise from said City. One of the lines of street railway 
owned and operated by petitioner in said City is known as its "Morehead 
Street Line," which line in part extends from the intersection of South 
Boulevard and East Morehead Street, along Morehead Street east to Dil- 
worth Road, along Dilworth Road to Mt. Vernon Avenue, along Mt. Vernon 
Avenue to Myrtle Avenue, along Myrtle Avenue to Berkeley Avenue, along 
Berkeley Avenue to Dilworth Road, along Dilworth Road to Morehead Street, 
and thence along Morehead Street to South Boulevard. One of the lines of 
street railway owned and operated by petitioner in said City is known as 
its "Fourth Ward Line," which line in part extends along the east side of 
North Tryon Street from Phifer Avenue to Twelfth Street, then on Twelfth 
Street to Church Street, on Church to Tenth Street, on Tenth to Pine Street, 
on Pine to Eleventh Street, and on Eleventh to Graham Street. 



'^*ort*« Cardiiia Stat* Library 
Raleigh 

Decisions and Adjustments of Complaints 17 

3. The City Council of the City of Charlotte, at a regular meeting of said 
Council on the 12th day of June, 1936, adopted a resolution authorizing peti- 
tioners to abandon the street railway lines constituting those parts of the 
Morehead Street Line and the Fourth Ward Line hereinabove referred to 
and described, and by said resolution authorized said Duke Power Company 
to substitute in the place of said street railway lines the following bus route, 
to-wit : 

Extending from "The Square" (Trade and Tryon Streets), along 
North Tryon Street to Twelfth Street, along Twelfth to Church Street, 
along Church to Tenth Street, along Tenth to Pine Street, along Pine to 
Eleventh Street, along Eleventh to Graham Street, along Graham to 
Twelfth Street, along Twelfth to Pine Street, along Pine to Tenth Street, 
along Tenth to Tryon Street, along Tryon to Morehead Street, along 
Morehead to Dilworth Road, along Dilworth Road to Mt. Vernon Ave- 
nue, along Mt. Vernon to Myrtle Avenue, along Myrtle to Berkeley Ave- 
nue, along Berkley to Dilworth Road, along Dilworth Road to Romany 
Road, east along Romany Road to Morehead Street, along Morehead 
Street to Tryon Street, and along Tryon Street to "The Square." 

4. The abandonment of said street railway lines and the substitution in 
place thereof of the motor bus route hereinbefore described will materially 
improve the transportation system of the entire City of Charlotte, and will 
materially improve and extend said system in the section of the City along 
and near East Morehead Street, and will be in the interest of public con- 
venience; and the operation of said motor bus route after the abandonment 
of said street railway lines will be a public necessity. 

5. No objection was filed with the Commission by any member of the pub- 
lic or by Charlotte Consolidated Construction Company, or by any other 
party, to the abandonment of said street railway lines and the establishment 
of said motor bus route in place of same. 

It is, therefore, ordered. That petitioner, Duke Power Company, be and 
is hereby authorized to abandon the street railway lines known as parts of 
its Morehead Street Line and of its Fourth Ward Line hereinabove set out 
and described, and to substitute in place of said street railway line the bus 
route hereinabove set out and described, which bus route is hereby estab- 
lished as a bus route and is to be operated as a part of the transportation 
system of petitioner in the City of Charlotte. 

Is further ordered. That petitioner be and it hereby is granted a certifi- 
cate of public convenience and necessity for the operation of said motor bus 
route. 

By order of the Utilities Commission of the State of North Carolina. 

This 15th day of June, 1936. 

Stanley Winborne, 

Utilities Commission. 
Attest : 

(S) R. 0. Self, Chief Clerk, 
Docket No. 750. 



A;*-- 



i*>>'^ 



18 ISr. C. Utilities Commission 

IN THE MATTER OF THE SUBSTITUTION OF MOTOR BUS ROUTES IN 
PLACE OF THE ELECTRIC STREET RAILWAY LINE NOW BEING 
OPERATED BY DUKE POWER COMPANY IN THE CITY OF WINSTON- 
SALEM FROM THE COURTHOUSE SQUARE ON LIBERTY STREET 
TO THE END OF THE PRESENT STREET RAILWAY LINE AND WEST 
FOURTH STREET AND TO THE END OF THE PRESENT STREET 
RAILWAY LINE AT THE RICHARD J. REYNOLDS HIGH SCHOOL. 

Order 

This cause coming on to be heard before the Utilities Commission of the 
State of North Carolina, and being heard at 11 o'clock a. m., on August 14, 
1935, the Commission finds the following facts: 

1. The Duke Power Company, a public service corporation, duly filed with 
the Commision its petition in the above entitled matter on July 23, 1935, 
and the Commission on July 25, 1935, duly made and entered its order direct- 
ing that a public hearing on said petition be held at the office of the Com- 
mission in the State Department Building at the corner of Edenton and 
Salisbury Streets in the City of Raleigh, at 11 o'clock a. m., on the 14th day 
of August, 1935, and that notice of said hearing be given to the public by 
publication in three consecutive issues of the Winston-Salem Journal and 
the Twin City Sentinel, daily newspapers regularly published in the City of 
Winston-Salem, and having a general circulation within the City and the 
surrounding territory. Pursuant to said order notice of said hearing was 
duly published in the Twin City Sentinel on August 1, 2, and 3, 1935, and 
in the Winston-Salem Journal on August 1, 2, and 3, 1935. 

2. The petitioner, Duke Power Company, now owns and operates, and for 
a number of years it and its predecessor, the Southern Public Utilities Com- 
pany, has owned and operated the street railway system in the City of Win- 
ston-Salem under a franchise from the city. One of the lines of this street 
railway system extends from Liberty Street along West Fourth Street to 
the end of said line on West Fourth Street, and from West Fourth Street 
over Glade and Hawthorne Streets to the end of the line at the Richard J. 
Reynolds High School. 

3. The Board of Aldermen of the City of Winston-Salem by a resolution 
adopted at a regular meeting held on June 28, 1935, authorized petitioner 
to abandon the operation of said street railway line from Liberty Street to 
the end of the line on West Fourth Street and from West Fourth Street over 
Glade and Hawithorne Streets to the end of the line at the Richard J. Rey- 
nolds High School, and at the same meeting, by two resolutions duly adopted, 
established two (2) motor bus routes to be operated in place of said street 
railway line, said motor bus routes being as follows: (1) Beginning at the 
Safety Zone west of the Court House Square on Liberty Street; running 
thence north on Liberty Street to West Fourth Street; thence west on West 
Fourth Street to West End Boulevard; thence west on West End Boulevard 
to Crafton Street; thence south on Crafton Street to Apple Street; thence 
west on Apple Street to Corona Street; thence south on Corona Street to 
Academy Street; thence west on Academy Street to Gales Avenue; thence 
south on Gales Avenue to Gaston Street; thence west on Gaston Street to 
Lockland Avenue; thence north on Lockland Avenue to Queen Street; thence 



Decisions and Adjustments of Complaints 19 

east on Queen Street to Sunset Drive; thence north on Sunset Drive to Ap- 
ple Street; thence east on Apple Street to Grafton Street; thence over Graf- 
ton Street to West End Boulevard, over West End Boulevard to Fourth 
Street, and an Fourth Street to the point of beginning. (2) Beginning at 
the Safety Zone west of the Gourt House Square on Liberty Street, running 
thence north on Liberty Street to West Fourth Street; thence west on West 
Fourth Street to Glade Street; thence northwest on Glade Street to Haw- 
thorne Road; thence northwardly on Hawthorne Road to the end of the 
street car line, near the Richard J. Reynolds High School; and thence 
returning to the starting point over the same route. A copy of said resolu- 
tions are attached to and made a part of the petition of Duke Power Gom- 
pany in this proceeding, being marked respectively Exhibits "A," "B," and 
"G." 

4. The abandonment of said street car line and the substitution in place 
thereof of the motor bus routes hereinbefore described will greatly improve 
the transportation service between the Gourt House Square in the Gity of 
Winston-Salem and the section of the Gity known as Grafton Heights, and 
the section of the Gity in and near the Richard J. Reynolds High School, 
and will be in the interest of public convenience; and the operation of said 
motor bus routes, after the abandonment of said street railway line, will be 
a public necessity. 

5. No objection was filed with the Gommission to the abandonment of said 
street railway line and the establishment of said motor bus routes in place 
of same. 

It is, thekefore, ordered, That petitioner, Duke Power Gompany, be, and 
it hereby is, authorized permanently to discontinue the operation of said 
street railway line hereinbefore described between Liberty Street and the 
end of said line on West Fourth Street and from West Fourth Street over 
Glade and Hawthorne Streets to the end of said line at the Richard J. Rey- 
nolds High School, and in place of said street railway line petitioner is au- 
thorized and empowered to maintain and operate as a part of its transpor- 
tation system in the Gity of Winston-Salem the motor bus routes hereinbe- 
fore described. 

It is further ordered, That petitioner be, and it hereby is, granted a cer- 
tificate of public convenience and necessity for the operation of said motor 
bus routes. 

By order of the Utilities Gommission of the State of North Garolina. 
This 14th day of August, 1935. 

Stanley Winborne, 

Utilities Commissioner. 
Attest : 

(Signed) R. 0. Self, Chief Clerk. 
Docket No. 487. 



20 ]^. C. Utilities Commission 

IN THE MATTER OF THE ABANDONMENT OF STREET RAILWAY 
LINES AND THE ESTABLISHMENT OF A MOTOR BUS ROUTE BY 
DUKE POWER COMPANY IN THE CITY OF WINSTON-SALEM. 

Order 

This cause coming on to be heard before the Utilities Commission of the 
State of North Carolina, and being heard at 11 o'clock, a. m., on October 6, 
1936, the Commission finds the following facts: 

1. The Duke Power Company, a public service corporation, duly filed with 
the Commission its verified petition in the above entitled matter on Septem- 
ber 16, 1936, and the Commission on said date duly made and entered its 
order, directing that a public hearing on said petition be held at the office 
of the Commission in the State Department Building at the corner of Eden- 
ton and Salisbury Streets, in the City of Raleigh, at 11 o'clock, a. m., on the 
6th day of October, 1936, and that notice of said hearing be given to the pub- 
lic by publication in three (3) consecutive issues of the Winston-Salem Jour- 
nal and the Twin Gity Sentinel, daily newspapers regularly published in the 
City of Winston-Salem, and having a general circulation in the City and the 
surrounding territory. Pursuant to said order, notice of said hearing was 
duly published in the Winston-Salem Journal on September 19, 20, and 22, 
1936, and in the Twin City Sentinel on September 18, 19, and 21, 1936. 

2. The petitioner, Duke Power Company, now owns and operates, and for 
a number of years it and its predecessor, the Southern Public Utilities Com- 
pany, has owned and operated the street railway system in the City of Win- 
ston-Salem under a franchise from said city. 

3. The Board of Aldermen of the City of Winston-Salem, by a resolution 
adopted at a regular meeting held on September 4, 1936, authorized petitioner 
to abandon the operation of all of its street cars in the City of Winston- 
Salem; and at the same meeting, by resolution duly adopted, established a 
motor bus route as follows: 

Beginning at the safety zone on Liberty Street south of West 
Fourth Street; thence north on Liberty Street to the city limits, and 
returning the same route to the intersection of Main and Eighth Streets; 
thence south on Main Street to Sprague Street; thence east on Sprague 
Street to Peachtree Street; thence north on Peachtree Street to Waugh- 
town Street; thence east on Waughtown Street to the city limits, return- 
ing the same route to Main and Third Streets; thence west on Third 
Street to Liberty Street; thence north on Liberty Street to the safety 
zone south of Fourth Street, the point of beginning. 

Copies of said resolutions are attached to and made a part of the petition 
of Duke Power Company in this proceeding, being marked, respectively, 
"Exhibit A" and "Exhibit B." 

4. The abandonment of petitioner's street railway lines, and the establish- 
ment by petitioner of the motor bus route hereinabove described, will mate- 
rially improve the transportation service in the City of Winston-Salem, and 
will be in the interest of public convenience, and the operation of said motor 
bus route after the abandonment of said street railway lines, shall be a pub- 
lic necessity. 



Decisions and Adjustments of Complaints 21 

5. That S. Porter Fulk of the City of Winston-Salem, through his attor- 
neys, Harvey A. Lupton and Parrish and Deal, filed a response to the peti- 
tion in this cause on October 3, 1936; that the said S. Porter Fulk was duly 
notified of the hearing before the Commission to be held at 11 o'clock, a. m., 
on the 6th day of October, 1936; and that neither the said S. Porter Fulk 
nor his attorneys appeared at said hearing and no evidence was introduced 
in support of the response filed by and on behalf of the said S. Porter Fulk, 
but it was affirmatively shown at the hearing that the routes approved in 
the resolution of the Board of Aldermen of the City of Winston-Salem were 
substantially the ones now served by the street railway with the exception 
of from the end of the car line to the city limits, approximately thirty-seven 
hundred feet on Waughtown Street. 

It is, theeefore, ordered, That petitioner be, and it hereby is, authorized 
permanently to abandon the operation of all of its street cars in the City of 
Winston-Salem, and petitioner is authorized and empowered to maintain and 
operate as a part of its transportation system in said city, the motor bus 
route hereinabove described, in accordance with the resolutions of the Board 
of Aldermen of the City of Winston-Salem. 

It is further ordered, That petitioner be, and hereby is, granted a certifi- 
cate of public convenience and necessity for the operation of said motor bus 
route. 

By order of the Utilities Commission of the State of North Carolina. 
This 6th day of October, 1936. 

Stanley Winborne, 

Utilities Commissioner. 
Attest: 

R. O. Self, Chief Clerk. 
Docket No. 833. 

IN RE: APPLICATION OF DUKE POWER COMPANY FOR AUTHORITY 
TO ISSUE BONDS AND NOTES FOR THE PURPOSE OF REFUNDING 
AT A REDUCED INTEREST RATE THE $40,000,000 41/2% SERIES 
BONDS OF THE COMPANY, DUE DECEMBER 1, 1967, NOW ISSUED 
AND OUTSTANDING. 

Order 

This matter comes before the Commission upon the application of Duke 
Power Company for authority to issue bonds and notes for the purpose of re- 
funding at a reduced interest rate the $40,000,000 of 414% series bonds of 
the company, due December 1, 1967, now issued and outsanding, which ap- 
plication is dated December 2, 1935, and was filed with the Commission on 
December 5, 1935. 

The application was duly heard by the Commission in its office in Raleigh 
on December 5, 1935. It appears from said application, which is duly veri- 
field and also from the records of the Commission, that the applicant, Duke 
Power Company, now has issued and outstanding the following bonds, to-wit: 
$40,000,000 of 41/2% series bonds, due December 1, 1967; $8,000,000 4% series 
bonds, due December 1, 1967; $383,000 first mortgage 5% bonds originally 
issued by the Charlotte Electric Railway Company, due April 1, 1936; $456,- 



22 ]^. C. Utilities Commission 

000 first mortgage 5% bonds originally issued by the Fries Manufacturing 
and Power Company, due January 1, 1940, but which have been called for 
redemption and payment January 1, 1936; and $40,000 first mortgage 6% 
bonds originally issued by the Winston-Salem Power Company, due January 
1, 1936, making a total outstanding bonded indebtedness at the present time 
of $48,879,000. The $40,000,000 ^1/2% series bonds and $8,000,000 4% series 
bonds were issued under and are secured by an indenture of mortgage dated 
December 1, 1927, executed by applicant, Duke Power Company, to Guaranty 
Trust Company of New York as Trustee, and by virtue of said mortgage con- 
stitute a first lien on the property of applicant subject to the aforesaid bonds 
originally issued by the Charlotte Electric Railway Company, the Fries Man- 
ufacturing and Power Company and the Winston-Salem Power Company, 
which were outstanding at the time of the acquisition by applicant of the 
properties of said companies, and which amount in the aggregate to the sum 
of $879,000. 

It further appears that applicant proposes to call for redemption and pay- 
ment said $40,000,000 of 4%% series bonds, pursuant to the terms of said 
indenture dated December 1, 1927, and to refund said bonds by issuing $30,- 
000,000 of 3%% series bonds of $9,000,000 of promissory notes to bear inter- 
est at a rate not to exceed 4% per annum, the bonds to be issued and sold 
and the notes negotiated at their par value. The $30,000,000 of 3^/^% series 
bonds will be issued under and pursuant to the terms of said indenture of 
mortgage dated December 1, 1927, executed by applicant to Guaranty Trust 
Company of New York as Trustee, they will mature on December 1, 1967, 
will be secured under said indenture of mortgage equally and ratably with 
said $8,000,000 of 4% series bonds, and together with said $8,000,000 of 4% 
series bonds will constitute a first lien on the property of the company sub- 
ject to the underlying bonds of $879,000 described above, or to so much of 
said underlying bonded indebtedness as may be outstanding at the time of 
the issuance of said $30,000,000 of 31/2% series bonds. 

The Commission is of the opinion, and so finds, that the refunding of said 
$40,000,000 of 41/^% series bonds by the issuance of $30,000,000 of 31/2% se- 
ries bonds, and of $9,000,000 of promissory notes to bear interest at a rate not 
to exceed 4% per annum, as proposed by applicant, will be in the public in- 
terest, in that the present annual fixed charges of applicant will be mate- 
rially reduced; and its total indebtedness reduced by at least a million dol- 
lars. 

It is, thereitore, ordered, That Duke Power Company be, and it hereby is, 
authorized to refund its $40,000,000 of 41/^% series bonds now outstanding as 
a lien on the property of applicant by issuing $30,000,000 of 3%% series 
bonds and $9,000,000 of promissory notes to bear interest at a rate not to 
exceed 4% per annum; said bonds to be issued and sold and said notes to be 
negotiated at their par value; and said bonds to be issued by applicant under 
the indenture of mortgage dated December 1, 1927, executed by applicant to 
Guaranty Trust Company of New York as Trustee, to mature on December 
1, 1967, to be secured under and by virtue of said indenture of mortgage 
equally and ratably with the $8,000,000 of 4% series bonds of the applicant 
now issued and outstanding, and together with said $8,000,000 of 4% series 
bonds to constitute a first lien on the property of the applicant subject to 



Decisions and Adjustments of Complaints 23 

an underlying bonded indebtedness of $879,000 existing against part of the 
property covered by said indenture of mortgage dated December 1, 1927, or 
to so much of said underlying bonded indebtedness as may be outstanding 
at the time of the issuance of said $30,000,000 of 3i/^% series bonds. 

By order of the Utilities Commission of the State of North Carolina, this 
December 5, 1935. 

Stanley Winborne, 

Utilities Commissioner. 

Frank W. Hanft, 

Associate Commissioner. 
Attest : 

(S) R. O. Self, Chief Clerk. 
Docket No. 621. 

IN RE: DURHAM PUBLIC SERVICE COMPANY TEMPORARY ADJUST- 
MENT OF SCHEDULES AND ROUTES OF THE BUS SERVICE IN THE 
CITY OF DURHAM. 

Order 

The petitioner appeared before this Commission on Wednesday, November 
27, and presented communication with reference to its agreement with the 
City of Durham as follows: 

City of Durham, North Carolina, 

November 25, 1935. 
Mr. J. J. Strictland, 
The Durham Public Service Co., 
Durham, North Carolina. 

Dear Mr. Strickland: 

With reference to your proposed new bus routing and schedule, copy of 
which has been filed with this oflice, I wish to advise as follows: 

Section 3, Article 1, of the Agreement between your Company and the City, 
dated June 23, 1931, names the streets over which you are to operate, and 
Article 2 of the same section provides that service must be fair, adequate 
and reasonable. 

I have examined your proposed new schedules, routes, and rates and be- 
lieve that their adoption will prove beneficial to all parties concerned. 

I am, therefore, willing to approve the said new rates, routes, and sched- 
ules for a trial period of ninety days, it being understood that such approval 
shall not prejudice the rights or interests of any of the parties concerned in 
the Agreement between your Company and the City of Durham under date 
of June 23, 1931. 

Very truly yours, 

(Signed) H. A. Yancey, 
HAY: DM City Manager. 

The petitioner in presenting the above evidence of temporary waiver of 
provisions of Section 3, Article 1, of the Agreement which exists between it 
and the City of Durham, presented the following present and proposed sched- 



24 



I^. C. Utilities Commission 



ules, effective December 1, 1935, as being in accordance with the temporary 
ninety-day Agreement with the City: 

1. East Durham-Hillsboro Road. 

2. Hospital and Club Boulevard-Fayetteville Street. 



Present 

6: 00 A- 8: 30 A 12 Min. 

8 : 30 A-11 : 30 P 15 Min. 

6:00 A-11: 00 A 15 Min. 

11 : 00 A- 9 : 30 P 12 Min. 

9 : 30 P-11 : 30 P 15 Min. 

8 : 00 A-11 : 30 P 15 Min. 

3. Hollyway-Lakewood Park. 

Present 
6 : 00 A-11 : 30 P 15 Min. 

6 : 00 A-11 : 30 P 15 Min. 



8:00 A-11: 30 P 15 Min. 

4. Mangum Street. 

Present 
6:00 A-11: 30 P 15 Min. 

6 : 00 A-11 : 30 P 15 Min. 

8 : 00 A-11 : 30 P 15 Min. 



Week Days 
Saturday 

Sunday 

Week Days 
Saturday 

Sunday 

Week Days 

Saturday 

Sunday 



Proposed 

6: 00 A- 8:30 P 15 Min. 

8:30 P-11: 30 P 20 Min. 

6 : 00 A-11 : 00 A 15 Min. 

11 : 00 A- 9 : 30 P 12 Min. 

9 : 30 P-11 : 30 P 15 Min. 

8:00 A-11: 30 P 20 Min. 



Proposed 
6 : 00 A-11 : 30 P .20 Min. 

6 : 00 A-11 : 00 A 20 Min. 

11:00 A-11: 30 P 15 Min. 

8:00 A-11: 30 P 20 Min. 



Proposed 
6 : 00 A-11 : 30 P 20 Min. 

6 : 00 A-11 : 30 P 20 Min. 

8 : 00 A-11 : 30 P 20 Min. 



The proposed fare for the ninety-day period is from 10 cents cash fare 
and four tokens for 30 cents to 10 cents cash fare and four tokens for 25 
cents. 

The above will be approved by this Commission with the understanding 
that the petitioner will report at the end of the period giving this Commis- 
sion the result of its operation by months, beginning December 1, 1935. 

Therefore, it is ordered, That the foregoing is hereby approved for a period 
of ninety days as set out in the communication from the City of Durham to 
the petitioner, dated November 25, 1935. 

Stanley Winborne, 

Utilities Commissioner. 

By order of the Commission. 
(S) R. 0. Self, Chief Clerk. 

This November 29, 1935. 

Docket No. 618. 



Decisions and Adjustments of Complaints 25 

IN RE: APPLICATION OF EDGECOMBE-MARTIN COUNTY ELEC- 
TRICAL MEMBERSHIP CORPORATION FOR A CERTIFICATE OF CON- 
VENIENCE AND NECESSITY FOR CONSTRUCTION OF ELECTRIC 
POWER LINE FROM TARBORO TO HASSELL. 

Order 

This matter came before the Commission upon application of the Edge- 
combe-Martin County Electrical Membership Corporation, filed with this 
Commission on September 12, 1936, asking for a Certificate of Convenience 
and Necessity authorizing the construction of an electric power line from 
Tarboro, Edgecombe County, North Carolina, in an eastwardly direction for 
a distance of approximately twenty-five miles, terminating at the Town of 
Hassell, Martin County, North Carolina, and also for certain lateral lines 
from said Tarboro-Hassell line to points shown on a certain map filed with 
the petition and for other lateral lines which said Membership Corporation 
may desire to construct from said Tarboro-Hassell line to adjacent territory 
not within the territory served by any other electric utility or Membership 
Corporation. 

The hearing on this petition was set for September 29, 1936, and notice 
thereof was publisher in The Southerner, a newspaper published at Tarboro 
and circulating in the counties of Edgecombe and Martin, as appears from 
the notice filed with this Commission, together with proof of publication 
thereof. 

On said September 29, 1936, this matter was heard before the undersigned 
Commissioner in the Hearing Room of the Commission in the City of Ra- 
leigh, when and where the petitioner presented its case without opposition 
or protest from any one. 

The petitioner offered in evidence copy of its Certificate of Incorporation, 
same being No. 41271, as filed in the office of the Secretary of State, of the 
State of North Carolina, and duly certified under seal by Honorable Stacey 
W. Wade, Secretary of State, for the purpose of showing, among other things, 
that the petitioner Corporation was authorized to acquire and hold property, 
borrow money, issue bonds and all other things, as enumerated in said char- 
ter, necessary for the construction of electric transmission lines to be used 
in supplying electrical energy to the individual members of said Membership 
Corporation. It was affirmatively shown by the petitioner, through its wit- 
nesses, J. C. Martin, Superintendent of Public Works, and J. T. Hagans, both 
of the Town of Tarboro, North Carolina, that the entire distance of the pro- 
posed construction, including lateral lines shown on said map, was approxi- 
mately thirty-two miles and that already one hundred and thirty-five indi- 
viduals had signed an agreement to become customers of and connect with 
said lines when same were constructed, and that said mileage did not include 
the proposed distribution system within the Town of Hassell, but that said 
number of proposed customers did include those residing within said town. 

It was further made to appear that the territory, through which the, pro- 
posed line is to be constructed, is not now served by any other private or 
membership electrical utility and that there is an urgent demand for said 
service and also that, in the opinion of said witnesses, after a careful and 
expert calculation of the cost and expense of said construction and of the 
income from the sale of electrical energy to the proposed customers, who 



26 ]^. C. Utilities Commission 

have already agreed to take the service, that the entire project will be en- 
tirely self-sustaining and will enable the petitioner Corporation to properly 
maintain the lines, satisfactorily furnish electrical energy and retire the 
loan. 

After hearing all the evidence adduced at the hearing, this Commission 
is satisfied that there is public demand for the service proposed; that said 
proposed service will promote the convenience of the general public within 
the proposed territory and that the construction of the proposed lines is nec- 
essary to meet the public demand. 

Wherefore, on motion of Messrs. Gilliam and Bond, attorneys for the peti- 
tioner, 

It is ordered. That a Certificate of Convenience and Necessity be and the 
same is hereby granted to the Edgecombe-Martin County Electrical Mem- 
bership Corporation to construct and maintain an electric transmission line 
from the Town of Tarboro, North Carolina, to the Town of Hassell, North 
Carolina, together with a distribution system within the Town of Hassell, 
and also to construct certain lateral lines from said main line to various 
points, as shown on the map filed with this Commission and attached to the 
petition in this cause, and such other lateral lines as may be hereafter con- 
structed in order to serve customers residing within the territory contiguous 
to said main line or extension thereof not within the territory now served 
by any other private or membership electrical utility or within the territory 
which may be served by any such utility at the time of the extension of said 
other lateral lines. 

This the 1st day of October, 1936. 

Stanley Winborne, 

Utilities Commissioner. 

Docket No. 831. 

IN RE: PETITION OF J. G. HAMMOND FOR CERTIFICATE OF PUB- 
LIC CONVENIENCE AND NECESSITY. 

Order 

This cause came before the Commission upon the petition of J. G. Ham- 
mond, sworn to on the 28th day of January, 1935, and filed with the Com- 
mission on January 30, 1935, in which the said Hammond, owner and opera- 
tor of an electric power plant and distribution system connected with the 
Davenport Milling Co., located between Rocky Mount and Nashville, North 
Carolina, asked to be allowed to extend his distribution system to include 
towns and communities, set forth in the petition, which will be hereinafter 
named. 

It has been made to appear, to the satisfaction of the Commission, that 
the present plant is free from encumbrances and owes no debts, except a 
small current bill of about $152.00; that the petitioner estimates that the 
cost of the extension proposed will amount to $4,000.00 and not to exceed 
$5,000.00, and that the petitioner is amply able to finance the purchase of 
materials and all installation costs of said extensions; and that he Is the 
sole owner of the Davenport Milling Co., which generates the current, and 



Decisions and Adjustments of Complaints 27 

also !the entire distribution system which was authorized by order of this 
Commission on September 17, 1934, and which is now in operation. 

This Commission having considered the petition and all facts stated there- 
in, and having made further investigation of the conditions existing in the 
territory in question, and having further ascertained that the territory pro- 
posed to be served, with the exception of the territory mentioned in Section 
5 of said petition, is now without electric service and the Commission be- 
lieving that there is public need and necessity for electric service in said 
territory, other than that in Section 5 of said petition; and that the territory 
mentioned in said petiition, other than that in Section 5 in said petition, 
naturally should be served by the said petitioner; and that the territory in 
Section 5 of said petition is properly within the service area of the Caro- 
lina Power and Light Co.; 

It is now, therefore, ordered. That Ithe said J. G. Hammond be and he is 
hereby authorized to make extensions of his distribution service to the fol- 
lowing points, as shown on the map filed with the Commission: 

1. From Mrs. Batts along the Sharpsburg Road about 1.6 miles to and 
across the farm of L. N. Viveretlte. 

2. From Joyners Cross Roads in a westerly direction along the old Ra- 
leigh Road, to and across the farm of B. C. Viverette. 

3. From Joyners Cross Roads in an easterly direction along the old Ra- 
leigh Road about two miles to and across the farm of C. 0. Calhoun. 

4. From Langleys Cross Roads in a westerly direction to Sandy Cross and 
from Sandy Cross in a southerly direction to and about half mile 'beyond 
Cooper's Union School to a cross roads. A total distance of about four miles- 

It is further ordered, That the request for authority to extend the dis- 
tribution system "to other adjacent Iterritory," as set out in Section 5, is 
hereby denied. 

This 20th day of March, 1935. 

Stanley Winborne, 

Utilities Commissioner. 
Docket No. 193. 

IN RE: APPLICATION OF THE HATTERAS DEVELOPMENT COMPANY 
FOR CERTIFICATE OF CONVENIENCE AND NECESSITY TO GEN- 
ERATE AND DISTRIBUTE ELECTRICITY IN THE TOWN OF HAT- 
TERAS AND THE TERRITORY ADJACENT THERETO. 

Order 

This is the application of the Hatteras Development Company for certifi- 
calte of public convenience and necessity to generate and distribute electric- 
ity in the Town of Hatteras and territory adjacent thereto on the banks in 
the County of Dare. 

When this application was first filed, the Commission had already granted 
a certificate of public convenience and necessity to the Pamlico Ice and Light 
Company, but since the Hatteras Development Company was constructing an 
ice plant at Hatteras, the Pamlico Ice and Light Company did not believe 
thaJt they could construct an additional electric plant without having the 



28 JNT. C. Utilities Commission 

ice business and operate same successfully; therefore, the Pamlico Ice and 
Light Company surrendered its certificate by letter to this Commission and 
stated that it would not object to the Commission's giving the Hatteras De- 
velopment Company a similar certificate to generate, distribute and sell elec- 
tricity in Hatteras and on the banks as aforesaid. 

The Commission has examined this matter carefully and is of the opinion 
that the granting of same is in the interest of public convenience and neces- 
sity. 

Therefore, it is ordered. That the said application be granted and that the 
Hatteras Development Company be and is hereby granted a certificate of 
public convenience and necessity for the construction, generation and dis- 
tribution and sale of electricity in the Town of Hatteras and territory adja- 
cent thereto; and 

It is further ordered. That the generating plant must be completed and 
the electricity offered to the public at rates approved by this office not later 
than twelve (12) months from the date of this certificate; otherwise, the 
said certificate shall become forfeited and by virtue of the failure to com- 
plete the plant and to sell electricity before the expiration of the said twelve 
months period, the certificate will be automatically cancelled. 
This 25th day of March, 1936. 

Stanley Winborne, 

Utilities Commissioner. 
By order of this Commission. 

R. 0. Self, Chief Clerk. 
Docket No. 490. 

IN RE: COMPLAINT OP LLOYD HENSON AND OTHER STOCKHOLD- 
ERS OF THE PISGAH MUTUAL POWER AND LIGHT COMPANY vs. 
HOMINY POWER AND LIGHT COMPANY, INCORPORATED. 

Order 

This matter came before the Utilities Commissioner for hearing and was 
heard in the offices of the Commission in the City of Raleigh on the fifth 
day of May, 1936. 

The complainants were represented by W. H. Hipps, Attorney at Law, 
Asheville, N. C, and the respondent, Hominy Power and Light Company, 
was represented by Donald C. Young, Attorney at Law, Asheville, N. C. 

Mr. Lloyd Henson for himself and other stockholders of the Hominy Power 
and Light Company, formerly known as the Pisgah Mutual Power and Light 
Company, filed complaint alleging that the Pisgah Mutual Power and Light 
Company was first organized by a group of citizens of Upper Hominy Town- 
ship, of Buncombe County, for the purpose of providing electricity for the 
vicinity known as South Hominy, in said township; that in the organization 
of said Company, which was a mutual affair, one Pete Hudson made certain 
promises and representatins as to the giving of his individual property as 
a guarantee that service rendered would be adequate and as an inducement 
to get other parties to invest their funds in said enterprise; that said Hud- 
son failed to comply with his agreement and keep his promises and, upon 
later investigation by the stockholders who had been induced to subscribe 



Decisions and Adjustments of Complaints 29 

for stock in said Company by reason of the said representations of the said 
Hudson, discovered that there was no record and no contract signed by the 
said Hudson, guaranteeing adequate service, and that said service was not 
now, and had never been, adequate. 

The Hominy Power and Light Company, in its answer, denied the allega- 
tion of the complainants, except the formation of the Pisgah Mutual Power and 
Light Company, and asserted that the said M. L. Hudson and wife did enter 
into a binding contract with the said Company, in which it was provided 
that a small tract of land belonging to said Hudson was to be used by the 
said Hudson for the purpose of generating electric current, which was to 
be sold at rates therein provided; that the complainants had full knowledge of 
said contract and that same was read and explained to the stockholders; 
that later the water power plant proved inadequate and in January, 1935, the 
said stockholders and the said Hudson purchased a larger tract of land that 
had greater power possibilities and constructed thereon a concrete dam and 
erected a large power plant at a cost of several thousand dollars, which was 
connected with the lines of the power company. That the Pisgah Mutual 
Power and Light Company, being a cooperative organization and having in 
its organization agreement certain limitations as to the amount of stock any 
one person might own, made it impossible to get sufficient funds to provide 
adequate service and, in order to eliminate this handicap, the Hominy Power 
and Light Company was organized in April, 1935, and all of the properties of 
the Pisgah Mutual Power and Light Company were acquired by the Hominy 
Power and Light Company and are now owned by it; that the purchase of 
said properties was approved by all of the stockholders of the Pisgah Mutual 
Power and Light Company, except one, and that new stock in the Hominy 
Power and Light Company was issued to the stockholders of the Mutual Com- 
pany and accepted by all of the said stockholders, except one. 

Voluminous testimony was offered at the hearing as to the adequacy and 
inadequacy of the service and as to the representations and misrepresenta- 
tions made as to the stock and as to the dissatisfaction of some of the pres- 
ent stockholders with the management of the Company and the failure of 
the officials of the Company to live up to and comply with agreements which 
were made at the time the Hominy Power and Light Company was formed. 

This case and the petition of the Hominy Power and Light Company for 
a certificate of public convenience and necessity, which latter case has al- 
ready been disposed of by this Commission in its order of June 9, 1936, in 
Docket No. 732, were overlapping, in that in both cases the questions of ade- 
quacy of service and the susceptibility of making the service adequate, were 
gone into at great length and, in the case wherein order was made on June 
9, 1936, this Commission found that adequacy of service could be established, 
provided the improvements were made as the result of obtaining a loan from 
the Government and, therefore, granted to the said Hominy Power and Light 
Company a certificate of convenience and necessity and authorized the bor- 
rowing from the Rural Electrification Administration the sum of $15,000 
for that purpose. 

The only question now involved in this case, which has not been passed 
upon, is that of rights and equities between the stockholders themselves and 
between the stockholders and promoters of the Corporation. These disputes 



30 ]Sr. C. Utilities Commission 

seem to have arisen more in reference to the disputed agreements alleged 
to have taken place between the said Hudson and the stockholders of the 
Pisgah Mutual Power and Light Company. But whether they were or not, 
this Commission is of the opinion, and so finds, that it has no authority to 
adjudicate the rights of the various stockholders and that that is a matter 
purely within the jurisdiction of a court of law. 

Wherefore it is ordered. That this case be and the same is hereby dis- 
missed. 

This 27th day of August, 1936. 

Stanley Winborne, 

Utilities Commissioner. 
Docket No. 600. 



State of North Carolina 
County of Wake 

APPLICATION OF THE HOMINY POWER AND LIGHT COMPANY TO 
THE UTILITIES COMMISSION FOR CERTIFICATE OF PUBLIC CON- 
VENIENCE AND NECESSITY AND FOR APPROVAL OF CONTRACT 
OF LOAN WITH THE UNITED STATES OF AMERICA. 

Order 

This matter came before the Commission upon the petition of the Hominy 
Power and Light Company, a corporation organized and existing under and 
by virtue of the laws of the State of North Carolina, filed with this Commis- 
sion on May 8, 1936, asking for a certificate of convenience and necessity 
for the construction of electric light lines and the extension of its present 
service to various sections in the territory known as South Hominy Valley, 
in Buncombe County, North Carolina, between Mt. Pisgah on the south and 
the village of Candler on the north, and south of the present power dam, all 
of which lines and extensions are shown on the map filed with this Commis- 
sion and also with the Rural Electrification Administration in North Caro- 
lina. The total mileage proposed to be constructed is approximatel yeighteen 
miles. 

It appears that the Hominy P'ower and Light Company is a successor to 
the Pisgah Mutual Power and Light Company and that the latter was a sort 
of a Mutual Association developed and entered into in 1933 by the people 
living in the South Hominy Valley; that in April, 1935, a corporation was 
formed, known as the Hominy Power and Light Company, which, under Its 
charter, was authorized and empowered to engage in the business of generat- 
ing and transmitting for sale eledtric energy and that the stockholders of 
the Hominy Power and Light Company are also local people. 

It further appears that at present the said Company has approximately 
seven miles of transmission lines, both secondary and primary, and that the 
cost of all material and labor used in the construction of said miles of lines 
was $3,937.75. It is further represented that the Company owns a concrete 
dam and power house, together with two and one-half acres of land with 
water rights and equipment in the power plant, which cost originally nearly 
$10,000 and which is worth today, according to the sworn statement filed 



Decisions and Adjustments of Complaints 31 

with this Commission, $9,150, thereby making the aggregate investment, ac- 
cording to the statements filed with this Commission, approximately $14,000. 

It further appears that the Hominy Power and Light Company has made 
application to the Rural Electrification Administration for a loan of $15,000 
to be used in the construction of approximately eighteen miles of lines in 
the territory in question and that if said loan is approved and said lines are 
constructed electric current will be made available to 235 additional resi- 
dences of said community which are now without electric service. 

Contemporaneously with the filing of the instant petition was heard by 
this Commission the case entitled Lloyd Henson and others vs. Hominy 
Power and Light Company, in which it was alleged that the service then 
being rendered by the said Company was inadequate and not susceptible of 
being made adequate. There were other matters presented in said petition 
as to the respective rights of certain stockholders growing out of the Pisgah 
Mutual Power and Light Company, which are immaterial to the determina- 
tion of the matters presented in the petition under consideration. 

Much testimony was offered in the Henson case, both as to adequacy and 
inadequacy of the present service and as to whether the dam and reservoir 
were of sufficient size and capacity to produce enough power to make the 
service adequate. The record in the case is voluminous. From all of the 
testimony, however, these deductions can be made: that the present service 
is not adequate; that the volume of business which the Company now has is 
insufficient to justify the expenditure of sufficient amounts for improvement 
in the plant to make the service adequate; that the reservoir is not large 
enough and the dam is not high enough to provide sufficient water for ade- 
quate service throughout the entire year and that during certajn periods of 
the year in order to provide sufficient power for the increased number of 
customers contemplated as the result of the extensions proposed, it will be 
necessary to supplement the water power either by a Diesel engine or by 
purchasing of current wholesale from the Carolina Power and Light Com- 
pany. 

This Commission has fully considered the contention made in the Henson 
case that a certificate of convenience and necessity should be denied unless 
it is agreed that current be purchased from the Carolina Power and Light 
Company; but on the other hand it has also considered the fact that the 
stockholders of the Hominy Power and Light Company have a considerable 
investment in the present dam, reservoir and generating plant and this Com- 
mission believes that this investment should be protected and that further- 
more, since this investment has already been made that it would be eco- 
nomical to utilize the hydro-electric plant for such periods of the year as it 
will produce adequate service and supplement it, whenever necessary, by 
either a larger Diesel engine or by buying the needed current wholesale from 
the Carolina Power and Light Company. Regardless, therefore, as to whether 
it is more economical to purchase the current from the Carolina Power and 
Light Company or install a larger Diesel engine, which can later be deter- 
mined, it appears indisputably true that, unless this certificate of conveni- 
ence and necessity is granted and the loan made by the Rural Electrification 
Administration, hundreds of people residing in the South Hominy Valley ter- 
ritory will be denied the advantages of electric service, and it also appears 



32 N. C. Utilities Commission 

equally as true that adequate service can be provided and placed upon a pay- 
ing basis at just and reasonable rates to be fixed by this Commission. 

The reference in this order to the case of Lloyd Henson, et als., vs. Hom- 
iny Power and Light Company, does not dispose of the various matters in- 
volved therein, which have no bearing upon the question herein presented of 
public convenience and necessity. A separate order will be made as to the 
matters presented in that case involving the rights of stockholders. 

Wherefore, it is ordered. That a certificate of convenience and necessity 
be and the same is hereby granted to the Hominy Power and Light Company 
to construct and extend its lines throughout the territory shown on the map 
filed with this Commission and also with the Rural Electrification Admin- 
istration in what is known as South Hominy Valley between Mt. Pisgah on 
the south and the village of Candler on the north and south of the present 
power dam. 

It is further ordered, That said Hominy Power and Light Company is 
hereby authorized, so far as it is necessary for this Commission so to do, 
to borrow from the Rural Electrification Administration the sum of $15,000 
for the purpose of constructing and extending said lines in said territory. 

It is further ordered, That on a day hereinafter named by this Commis- 
sion, said Hominy Power and Light Company shall file with this Commis- 
sion a complete detailed cost inventory of all of its properties and also a 
complete itemized statement of its operating expenses, cost of maintenance, 
amounts to be set aside for depreciation and all other expenses incident to 
the proper operation of the utility, so that this Commission can determine 
and fix rates which are sufl5cient to amortize the Rural Electrification Ad- 
ministration loan, according to the terms of the agreement between the Ad- 
ministration *and the Utility, to provide proper maintenance, depreciation 
and all other costs incident to the operation of said utility, plus a fair and 
reasonable return upon the investment. 

This 9th day of June, 1936. 

Stanley Winborne, 

Utilities Commissioner. 

Docket No. 732. 

IN THE MATTER OF APPLICATION OF CERTIFICATE OF PUBLIC 
CONVENIENCE AND NECESSITY OF THE PAMLICO ICE AND LIGHT 
COMPANY. 

Order 

This matter coming before the Commission upon an application duly filed 
and verified as of the second day of March, 1935, by the Pamlico Ice and 
Light Company,' a corporation duly organized and operating under and by 
virtue of the laws of the State of North Carolina, and in which application 
this Commission is asked to find that public convenience and necessity de- 
mand and justify the establishment of electrical power and light service in 
the town of Engelhard, and other towns and intermediate country in the 
County of Hyde, North Carolina; said territory to be served being shown 
by a map^ filed with said application and marked Exhibit "B." 

The Commission having duly considered the matters and things set forth 
in said application, the charter of said Corporation, the map attached above 



Decisions and Adjustments of Complaints 33 

referred to, and it having been made to appear to the satisfaction of the 
Cofmmission that the territory proposed to be served is far removed from 
the territory of any other power and light i company and that the proposed; 
service is much needed and will result in great public benefit; and 

It further appearing to the Commission that, due to the isolation of this 
section from the territory of any other power and light company, a public 
hearing on said application will be unnecessary; 

It is, therefore ordered. That the said Pamlico Ice and Light Company be 
and the same is hereby authorized to construct and maintain electric power 
and light service at the points and over tlie lines specifically indicated upon 
said map marked Exhibit "B," as aforesaid, and filed as a part of the ap- 
plication in this cause. 

It is further ordered. That the schedule of rates, which is at this time 
filed with the Commission, are accepted and shall be the rates to be charged 
by said Company until further order of this Commission. 

This 11th day of March, 1935. 

Stanley Winborne, 

Utilities Commissioner. 
Docket No. 308. 

IN RE: APPLICATION OF THE PAMLICO ICE AND LIGHT CO., INCOR- 
PORATED, FOR AMENDMENT OF ITS FRANCHISE PERMITTING 
CONSRUCTION AND OPERATION OF AN ELECTRIC PLANT AT HAT- 
TERAS, NORTH CAROLINA. 

Order 

The above entitled matter coming before the Commission upon a petition 
of the Pamlico Ice and Light Co., Inc., asking that a franchise heretofore 
granted to said Corporation, in March, 1935, be amended so as to authorize 
said Corporation to construct and operate an electric plant at Hatteras, N. C, 
for the purposes fully set out in said petition. 

The Commission having considered the petition and being convinced that 
there is great public need and necessity for electric service in the Town of 
Hatteras, and that the petitioner is in a position to provide adequate service; 
and that the rates and charges submitted to the Commission are fair and 
reasonable for the beginning of said service, considering the capital which 
will be required to provide the service; 

It is now ordered, That the amendment to said franchise, granted in 
March, 1935, be allowed, as requested and the petitioner is hereby authorized 
to construct and operate an electric plant at Hatteras, N. C, and to build 
adequate electric lines and require suitable rights of way and to sell and 
generally deal in and with electricity and electric power for domestic and 
commercial purposes in the Town of Hatteras and adjacent territory. 

This 6th day of June, 1935. 

Stanley Winborne, 

Utilities Commissioner. 

Docket No. 308. 



34 ]^. C. Utilities Commission 

IN RE: PETITION OF JOHN A. OATES, FAYETTEVILLE, NORTH CARO- 
LINA. 

Okder 

This is the petition of Mr. John A. Oates, of Fayetteville, North Carolina, 
for a certificate of convenience and necessity to construct a water power de- 
velopment seven miles north of Fayetteville. The property is now solely 
owned by the petitioner who states that no encumbrance is thereon; that 
there is no power plant serving this territory for a distance of fifteen miles 
or more; that the Fayetteville city line extends north toward the property 
three miles; and that there is no public line between that point and Erwin, 
the distance being approximately twenty miles. The construction of this line 
would be financed by the owners of the property, putting in the power site 
as part of the stock, prospective users furnishing labor and poles and the 
Company purchasing the dynamo, turbine wheel, wire, etc., the length of 
the line to be approximately fifteen miles. 

This proposition was submitted to the Carolina Power and Light Com- 
pany, which company signified to the Commission that it was not interested 
in the development and would make no objection. 

The line proposed is located on the west side of the Cape Fear River and 
chiefly along Highway No. 21 and the river, including the settlement of 
Linden on the south side of Little River. 

Under the above conditions and on the above facts, as set out by the 
applicant, and no opposition being entered by anyone after due notice, the 
Commission finds public convenience and necessity, therefore, it is 

Ordered, That the petition be granted. 

This 15th day of January, 1935. 

Attest: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 300. 

TOWN OF BRYSON CITY, N. C, PETITIONER, vs. SMOKY MOUNTAIN 
POWER COMPANY, RESPONDENT 

Notice to Petitioner Pursuant to Motion 

This notice is issued pursuant to motion filed by respondent in the above 
matter. Motion was filed with this office on March 26, 1936, and copies were 
forwarded on March 24th to attorneys for the petitioner in Bryson City and 
Murphy, and receipt of said copies were affirmed by telephone to the Chief 
Clerk of this Commission on the 30th instant. The motion is as follows: 

"That an order issue in this cause directed to the petitioner, the Town 
of Bryson City, requiring the said petitioner to make its petition filed 
in this cause more specific and certain; especially as to the fourth al- 
legation of said petition wherein it is alleged "that the rates being 
charged are unjust, unreasonable and unjustly discriminatory. 

"That as a basis for this motion respondent avers that said allegation 
is not a statement of facts but only conclusions. That respondent is en- 
titled as a matter of right to have certain and definite knowledge as to 
the facts upon which the petition is based. 



Decisions and Adjustments of Complaints 35 

"Respondent further moves the Commission that the fifth allegation 
be stricken from the petition for the reason that the same is irrelevant 
and immaterial to a determination of the issues involved in this cause." 

The petition was originally set for hearing on April 14th, at 10:30 o'clock 
A. M., in the office of the Commissioner at Raleigh, but, since this motion 
has now been filed, the Commissioner will hear argument on this motion on 
the same date and hour, instead of the principal issue originally filed by the 
petitioner; 

Therefore, it is ordered, That the Town of Bryson City, N. C, petitioner 
in Docket No. 620, be and it is hereby ordered and directed to show cause, 
if any cause it has, on April 14, 1936, at 10:30 o'clock a. m., in the office of the 
Commissioner in Raleigh, why order should not issue granting said mo- 
tion and requiring the petitioner to comply herewith. 

This Monday, March 30, 1936. 

By order of the Commissioner. Stanley Winborne, 

R. 0. Self, CTiie/ Cle7'k. Utilities Commissioner. 

Docket No. 620. 

IN RE: MOTION BY RESPONDENT, THE SMOKY MOUNTAIN POWER 
COMPANY, THAT THE PETITIONER, THE TOWN OF BRYSON CITY, 
BE REQUIRED TO MAKE ITS PETITION FOR A REDUCTION IN 
LIGHT AND POWER RATES MORE SPECIFIC AND CERTAIN. 

Interlocutory Order 

The above entitled matter came on for hearing before Stanley Winborne, 
Utilities Commissioner, sitting alone, on Tuesday, April 14, 1936, in the City 
of Raleigh, upon the interlocutory motion filed by the respondent asking 
that the petitioner be required to make its petition, and especially Section 4 
thereof, more specific and definite and also that Section 5 of said petition 
be stricken out as being immaterial and improper. 

The respondent was represented at this hearing by Judge T. D. Bryson of 
the Duke University law faculty, Durham, and the petitioner by Mr. McKind- 
ley Edwards, Attorney at Law, Bryson City. 

The respondent, through its attorney, Judge Bryson, contended that Sec- 
tion 4 of the petition, which reads as follows, "that the rates being charged 
are unjust, unreasonable, and unjustly discriminatory," states a conclusion 
of facts without alleging facts from which said conclusion is reached, and 
that as a matter of law said allegation is fatally deficient and that if same 
is not amended so as to set out in particular why said rates are unjust, un- 
reasonable and unjustly discriminatory, that the petition fails to state a 
cause of action and should be dismissed. 

It was further contended by the respondent, through its attorney, Judge 
Bryson, that Allegation 5 of the petition, which is as follows, "that although 
all other power companies within the State of North Carolina have made 
substantial reductions in the past two years, no reductions have been made 
by the Smoky Mountain Power Company," is an immaterial allegation cal- 
culated to unduly prejudice the respondent's defense; has nothing to do with 
the rates charged by the respondent, and should be ordered stricken from 
the petition. 



36 ^. C. Utilities Commission 

The petitioner, through its attorney, Mr. Edwards, in reply to the con- 
tention of the respondent contended that Allegation 4 followed the wording 
of the statute, as set out in Section 2, Chapter 307, Public Laws of 1933, 
which provided "that every rate made, demanded, or received by any public 
utility, or by any two or more public utilities jointly, shall be just and rea- 
sonable," and that Allegation 4 which alleges that the rates being charged 
by the petitioner are unjust and unreasonable and unjustly discriminatory 
is a sufficient allegation made under the statute and fully apprises the 
respondent of what the petitioner intends to offer evidence tending to prove, 
and that if said petitioner does support said allegation by evidence estab- 
lishing the fact that the rates charged by the respondent are unjust, unrea- 
sonable, and unjustly discriminatory, that the petitioner is entitled to an order 
reducing the rates of the respondent in an amount sufficient to make them 
just and reasonable as required by the statute. 

WiNBORNE, Commissioner : From the evidence adduced at the hearing, it 
is found as a fact that the petition in this causle was filed on December 5, 
1935, and that the answer was filed by the respondent on December 24, 1935, 
through its then attorney, Mr. Howell Greene, of Decatur, Georgia. It also 
appears of record that the motion now under consideration was not filed 
until March 25, 1936. 

There is on record in the office of this Commission a schedule of the rates 
and charges for the various kinds and classes of service rendered by the 
respondent Company in the territory which it serves, including the Town 
of Bryson City. Different rates are charged for different classes of service, 
presumably based on the cost of rendering the particular kind of service, 
with an amount over and above the cost to render a fair return to the re- 
spondent Company on each particular class of service. The composite rev- 
enue derived from all classes of service is presumed to produce a fair re- 
turn and no more than a fair return upon a fair and reasonable value of all 
the properties used and useful, which are necessary to render adequate serv- 
ice, after deducting a reasonable expense for the administration and main- 
tenance and a fair amount to cover depreciation of the properties from all 
causes. 

The respondent has in its possession, or should have, a complete and de- 
tailed inventory of the costs of all of its properties, both historical and pres- 
ent costs; it knows exactly what its operating cost is; from years of expe- 
rience it should know how this operating cost should be allocated to its vari- 
ous classes of customers; it knows definitely what revenue it receives from 
each class of customers; it claims to know the rapidity of depreciation of 
each and several of its kinds of properties; it has a record of the current 
maintenance cost of its properties; and it knows what it pays to its oflficials 
and employes in the conduct of its business. All of these matters heretofore 
enumerated are peculiarly within the knowledge of the respondent Company 
and are matters about which the petitioner could not be expected to have 
exact and detailed information. The only information that the petitioner 
could be reasonably expected to have would be the rates which it pays for 
the services rendered by the respondent. 

In the petition it is alleged that the petitioner believes that the rates 
charged are too high for the services rendered and that the same are unfair, 



Decisions and Adjustments of Complaints 37 

unreasonable and unjustly discriminatory, following the wording of the 
statute. 

The respondent contends that such an allegation is merely a conclusion 
and defective, both in common law and under the Code, for the reason that 
it does not allege wherein and how the rates charged by the respondent are 
unfair, unreasonable and unjustly discriminatory. The Commission is ad- 
vertent to the line of decisions of our Supreme Court which held that a com- 
plaint which merely states a conclusion and not the facts from which that 
conclusion is derived is deficient, and it has carefully studied the decision 
in the case of Hartsfield vs. Bryan, 177 N. C. 169, cited by the respondent; 
Moore vs. Hobbs, 79 N. C. 536; Lassiter vs. Roper, 114 N. C. 17; Rountree vs. 
Robinson, 98 N. C. 107, and others. In all of these decisions it appears that 
the complaint failed to allege facts, the knowledge of which were, or should 
have been, in the possession of the complainant. There can be no doubt but 
what the law requires that one, who brings a suit upon a debt, shall allege 
how the debt was incurred and that it is not sufficient merely to allege that 
it is due; neither is it sufficient to allege that the cause of action is barred 
by the statute of limitations, without alleging when the cause of action ac- 
crued, in order that the Court may determine whether the action is barred 
by computing the time from the facts alleged. Neither does the complainant 
state a cause of action which, as in the case of Hartsfield vs. Bryan, suvra, 
it is not alleged that the party bringing the action is the real party in inter- 
est. 

The foregoing cases, however, are easily distinguishable from another line 
of decisions of our Supreme Court, in which it has been held that a cause 
of action is not defective for the reason that it fails to state in detail facts 
peculiarly within the knowledge of the adverse party and that when it ap- 
pears that where the absence of said detailed facts are complained of and 
a bill of particulars is demanded, the trial Judge, in his discretion, may re- 
fuse to require the furnishing of a bill of particulars, if in his discretion it 
appears that said details are matters peculiarly within the knowledge of the 
party requesting the bill of particulars and are such that cannot be, with 
any degree of accuracy, alleged in the complaint. Bristol vs. R. R., 175 N. C. 
509. Customarily where there is doubt about the absolute facts, the allega- 
tion is made upon information and belief but, in the instant case, the peti- 
tion would not have been strengthened had it been alleged, for illustration, 
upon information and belief, that the rate charged domestic customers was 
too high, that the administrative cost was excessive; that the amount set 
aside for maintenance was more than it should be; that the reserve for de- 
preciation more than covered the actual wear and tear of the property, etc. 
The petitioner has no definite knowledge as to these matters, but it does 
believe and alleges that, taking them altogether, the rates charged by the 
respondent are "unfair, unreasonable and discriminatory" and asks that the 
rates be investigated and that the respondent be required to show and justify 
its various items of costs and reveal its profits. 

The Commission is of the opinion that it would be a vain thing to at- 
tempt to require the petitioner to file a bill of particulars, which would be 
largely a guess, about matters which the respondent has definite information. 

Furthermore, the respondent cannot now hardly be heard to say, three 
months after it had filed a rather lengthy answer to the petition that the 



38 'N. C. Utilities Commission 

allegations of the petition are not sufficiently clear for the respondent to 
understand. The proper time to have raised these questions was before the 
filing of the answer. 

Considering that part of the respondent's motion, which asks that Section 
5 of the petition be stricken out as immaterial and improper, the Commis- 
sion is of the opinion that it is immaterial and improper to either allege or 
consider, in determining what are fair rates of the respondent Company, 
what reductions have been made by other utilities. The rates of each util- 
ity must be determined upon the valuations of the properties, the costs of 
operation and the revenues received from and by that particular utility, 
without regard to what other utilities are charging. 

Wherefore?, it is ordered: 

First — That the respondent's motion to require the petitioner to file a 
Bill of Particulars, is denied. 

Second — That the respondent's motion asking that the Allegation 5 of 
the petition be stricken out, is allowed. 

Third — That this case be set for hearing on the 17th day of June, 1936, 
at 10 o'clock A. M., in the City of Raleigh, at the office of the Utilities Com- 
missioner, for a full investigation of the present rates and charges of said 
utility and the justification therefor, in order that it may be determined 
whether the petitioner is entitled to a reduction in said rates. 

This 1st day of June, 1936. 

Stanley Winborne, 

Utilities Commissioned'. 

Docket No. 620. 

IN THE MATTER OP THE APPLICATION OF SMITH JOINES ET AL., 
SEEKING CANCELLATION OF LICENSE OF SOUTH EAST PUBLIC 
SERVICE COMPANY. 

Order 

Attorney for Petitioners — Charles G. Gilbreath, Wilkesboro. 
Attorney for Respondent — Ross and Watts, Chicago, 111. 
Frank W. Hanft, Associate Commissioner. 

By order made May 12, 1936, on consent of the parties herein, there was 
submitted to the Commission for determination the question whether, as- 
suming the facts in the complaint as supplemented by facts contained in the 
answer to be true, the Commission would grant the relief asked. 

The facts alleged are substantially as follows: The South East Public 
Service Co., a West Virginia corporation, at the time of the filing of the com- 
plaint herein, owned and operated certain telephone properties in the State 
of North Carolina. All the securities of the South East Public Service Co. 
were owned by Central West Public Service Co., a Delaware corporation, 
which in turn had delivered the s.aid securities to First National Bank of 
Chicago, Illinois, as security, along with other security, for an issue of bonds 
of Central West Public Service Co. 

Complainants allege in general terms that the South East Co., acting as 
an agency of the Central West Co., entered this State "for the purpose of 



Decisions and Adjustments of Complaints 39 

getting control of certain teleplione exchanges in Northwestern North Caro- 
lina, . . . with the further purpose of exploiting said exchanges, and defraud- 
ing the citizens of this section of the State of their money," etc. 

The specific allegations of fraud on the part of the South East Co. are 
that its employes, as a condition to keeping their jobs, were obliged to sell 
to the public preferred stock of the Central West Co., and that in doing so, 
pursuant to the directions of the South East Co., they represented to peti- 
tioners, buyers of the stock, that the Central West Co. was the same as the 
South East Co., and was solvent, and that the stock was being marketed to 
raise funds to improve the telephone exchanges in the State, particularly 
the North Wilkesboro system, in which petitioners are interested. By reason 
of these representations petitioners bought shares of the stock. The repre- 
sentations were false and fraudulent. The Central Vv^est Co. was then insol- 
vent, and instead of improving the telephone systems of the State, Central 
West Co. has exploited them. Of course these allegations are denied by the 
South East Co., but for the purpose of this case must be accepted as true. 

By reason of the above alleged facts petitioners ask that the Commission 
"cancel" the South East Company's "right to do business in this State." Fur- 
ther, that the Commission take the company's property in charge "to the set- 
tlement of its business in this State." 

We shall deal with the latter prayer for relief first. Apparently the peti- 
tioners are asking the Commission to take charge of the property of the 
South East Co. as receivers. Whether the Commission has any such author- 
ity it is not necessary to decide, since it appears from the answer of the 
South East Co., and is not denied by petitioners, that prior to the filing of 
the complaint herein a proceeding had already been begun in the United 
States District Court for the District of Delaware, under Section 77-B of 
the National Bankruptcy Act for the reorganization of the Central West Pub- 
lic Service Company. Whether the petition under 77-B was approved before 
or after the complaint was filed in this case does not appear, nor is it mate- 
rial, for in either event the receivership here would have to give way to the 
Federal proceeding. The National Bankruptcy Act, Section 77-B (a) pro- 
vides, "If the petition — is so approved — the court — shall, during the pendency 
of the proceedings under this section, have exclusive jurisdiction of the 
debtor and its property wherever located for the purposes of this section," 
etc. Section 77B (i) provides: "If a receiver or trustee of all or any part 
of the property of a corporation has been appointed by a Federal, State, or 
Territorial Court, whether before or after this amendatory Act takes effect, 
a petition or answer may be filed under this section at any time thereafter 
by the corporation, or its creditors as provided in Subdivision (a) of this 
section and if such petition or answer is approved, the trustee or trustees 
appointed under this section, or the debtor if no trustee is appointed, shall 
be entitled forthwith to possession of and vested with title to such property," 
etc. 

It is true that the answer does not state that the properties of the South 
East Co. were involved in the same reorganization under 77-B. However, 
by the reorganization a new Delaware corporation named Central Electric 
and Telephone Company was organized, and this Commission has approved 
the transfer of all the properties of the South East Co. to the new company. 



40 IST. C. Utilities Commission 

Therefore it is apparent that the South East Co. was involved in the same 
reorganization as its parent corporation, the Central West Co., pursuant to 
77-B (a). 

Although the above fact is not drawn from the pleadings in this case, it 
is a matter of record in the files of this Commission. The Commission will 
take judicial notice of its records. See Anderson vs. Board of Dental Exam- 
iners, 27 Cal. App. 336, 149 Pac. 1006 (1915). The doctrine of judicial no- 
tice extends to administrative tribunals such as this Commission. See Rich 
vs. McClure, 78 Cal. App. 209, 248 Pac. 275 (1926); U. S. vs. Strauss Bros. & 
Co. (C. C. A. 2nd, 1905), 136 Fed. 185. 

Accordingly, it is apparent that if the Commission has any power to ap- 
point a receiver for the properties of the South East Co., its jurisdiction has 
been superseded by the Federal proceeding under 77-B. 

There remains the question whether the Commission can and should deny 
to the South East Co* the right to operate telephone properties in this State 
by reason of its fraud in the sale of the securities of its holding company, 
the Central West Co. It is doubtful whether the Commission has authority 
to deprive a utility already validly operating in the State of the right to con- 
tinue. Since 1931 no utility may begin operations without a certificate from 
this Commission. Companies already operating are not required to obtain 
certificates. Neither are utilities required to obtain certificates in order to 
make extensions into contiguous territory not already served by some other 
operator. N. C. Code Ann. (Michie, 1935) Sec. 1037 (d). Since companies 
already operating in 1931 need no permission from this Commission to oper- 
ate, it is difficult to see how the Commission could deny them permission. 
Even in the case of companies operating under certificate from this Commis- 
sion, the statutes are devoid of any provisions authorizing the Commission 
to revoke the certificates. Such authority might exist by implication from 
authority to grant them. 

However, it is not necessary to pass upon the authority of this Commis- 
sion to deny the South East Co. the right to operate in this State, because, 
as above pointed out, the South East Co. is to discontinue operations, and 
to be succeed by a new corporation, the Central Electric and Telephone Co. 
The withdrawal from the South East Co. of its right to operate could at 
best result merely in the transfer of its properties to a successor, and that 
has been done by the Federal proceeding under 77-B. 

Although the complaint in this case does not allege that the service ren- 
dered by the South East Co. is inadequate, the voluminous correspondence in 
the file of the Commission concerning this case contains charges that the 
service is bad. If the new Central Electric and Telephone Co. fails to render 
adequate service after a reasonable opportunity, this Commission stands 
ready to determine on its merits that matter of the service to the communi- 
ties where the Company operates. 

Therefore, it is ordered. That the complaint herein be, and it hereby is 
dismissed. 

Attest: Stanley Winborne, 

R. D. Self, Chief Clerk. Utilities Commissioner. 

August 29, 1936. Frank W. Hanft, 

Docket No. 135. Associate Commissioner. 



Decisions and Adjustments of Complaints 41 

IN RE: REORGANIZATION OF SOUTHERN PUBLIC UTILITIES COM- 
PANY, THE MERGER OP THE SOUTHERN PUBLIC UTILITIES COM- 
PANY, AS REORGANIZED, WITH DUKE POWER COMPANY, AND THE 
REFUNDING OF THE BONDS OF THE SOUTHERN PUBLIC UTILI- 
TIES COMPANY NOW ISSUED AND OUTSTANDING. 

Order 

On consideration of the application of Southern Public Utilities Company 
and Duke Power Company for authority to reorganize the Southern Public 
Utilities Company, to merge and consolidate said Company as reorganized 
with Duke Power Company, and, after said merger and consolidation, to re- 
fund the 5% bonds now outstanding as a lien on the property of the South- 
ern Public Utilities Company with 4% bonds to be issued by Duke Power 
Company in an amount not in excess of the bonds which will be retired and 
refunded, the Commission finds that the proposed reorganization of the 
Southern Public Utilities Company as set forth in said application, and the 
proposed merger of said reorganized Southern Public Utilities Company 
with Duke Power Company will be in the public interest, in that the owner- 
ship of the properties now owned and operated by said two Companies will 
be placed in one Company, which unification of ownership will promote greater 
efficiency and economy in the management and operation of said Companies. 
The Commission further finds that said reorganization of the Southern Pub- 
lic Utilities Company and said merger and consolidation of said Company as 
reorganized with Duke Power Company will enable Duke Power Company to 
refund the 5% bonds now existing as a lien on the property of the Southern 
Public Utilities Company with 4% bonds, thus materially reducing the an- 
nual fixed charges against said properties; that said 4% refunding bonds will 
be issued by Duke Power Company for a lawful object within the corporate 
purposes of said Company, their issuance will be compatible with the public 
interest and consistent with the proper performance by said Company of its 
service to the public as a public utility company, and will not impair, but 
will increase, its ability to perform that service, and that the issuance of said 
bonds will be reasonably appropriate for the performance of such service. 

It is, therefore, ordered. That Southern Public Utilities Company be, and 
it hereby is, authorized to reorganize, (a) by organizing, or causing to be 
organized under the laws of the State of New Jersey, a corporation to be 
known as "Southern Public Utilities Company," with the same, or substan- 
tially the same, powers as the present Southern Public Utilities Company 
has, and with an authorized share capital identical in amount and terms 
with the issued and outstanding share capital of the present Southern Pub- 
lic Utilities Company, namely. Two Hundred and Ten Thousand (210,000) 
shares of the par value of One Hundred Dollars ($100) each, all of the same 
kind; and (b) to convey, assign, transfer and deliver, or cause to be con- 
veyed, transferred, assigned and delivered to said reorganized Company, 
when it has been thus formed, all of the property, assets and business of the 
present Southern Public Utilities Company of every kind and description, 
upon terms whereby the reorganized Company will assume and undertake 
to pay off, discharge and perform all of the debts, liabilities, duties and ob- 
ligations of the present Southern Public Utilities Company, and will issue 
to Duke Power Company the Two Hundred and Ten Thousand (210,000) 



42 ^N". C. Utilities Commission 

shares of stock of the reorganized Company in exchange for the like amount 
of stock now lield by tlie Duke Power Company in the present Southern 
Public Utilities Company, 

It is further ordered, That said Southern Public Utilities Company after 
being reorganized as aforesaid, on complying with all applicable provisions 
of the statutes of this State, is authorized to acquire the property assets and 
business of the present Southern Public Utilities Company, and to maintain 
and operate the same subject to the lawful jurisdiction and regulation of this 
Commission, or other lawful governmental authority, until said Southern 
Public Utilities Company as so reorganized shall be merged and consoli- 
dated with Duke Power Company, which merger and consolidation is hereby 
authorized. 

It is further ordered, That Duke Power Company be, and it hereby is, au- 
thorized, after said merger and consolidation, to refund all or any part of 
the 5% bonds now outstanding as a lien on the property of the present 
Southern Public Utilities Company, with bonds to be issued by the Duke 
Power Company and secured by first lien on the property which said Com- 
pany will own after said merger and consolidation, said refunding bonds 
to be issued by Duke Power Company under the indenture of mortgage dated 
December 1, 1927, executed by Duke Power Company to Guaranty Trust 
Company of New York, as Trustee, to mature on December 1, 1967, to bear 
interest at a rate not in excess of 4% per annum, and not to exceed in amount 
the amount of the bonds to be retired by the issuance of said refunding 
bonds. 

By order of the Utilities Commission of the State of North Carolina. 
This 22d day of March, 1935. 

Stanley Winborne, 

Utilities Commissio7icr. 
Frank W. Hanft, 

Associate Commissioner. 
Docket No. 346. 

AN APPLICATION OF THE TIDE WATER POWER COMPANY TO THE 
UTILITIES COMMISSION FOR CERTIFICATE OF PUBLIC CONVENI- 
ENCE AND NECESSITY AND FOR APPROVAL OF CONTRACT OF 
LOAN WITH THE UNITED STATES OF AMERICA. 

Order 

This matter comes before the Utilities Commission upon an application 
of the Tide Water Power Company asking for a Certificate of Convenience 
and Necessity for the construction of certain rural lines in the Counties of 
Columbus, Pender, Sampson, Duplin, Carteret, Pamlico, Craven, Greene, 
Lenoir, and Onslow, along certain definite routes between certain definite 
points set out in particular together with the mileage of each proposed con- 
struction, in an exhibit filed with the petition and now on record with the 
Commission; also for the approval of a contract of loan between the said 
Tide Water Power Company and the United States in the amount of $142,- 
250.00, to be used by the Tide Water Power Company for the construction of 
said rural lines. 



Decisions and Adjustments of Complaints 43 

The Commission, having considered the petition of the Tide Water Power 
Company together with all exhibits and representations of the officers of 
said Company, and having knowledge itself of the territory to be served by 
the construction of said rural lines, is of the opinion that said construction 
of each and all of said lines, as set out in the exhibit attached to the peti- 
tion, will provide a much needed service and is necessary for the proper de- 
velopment of the territories proposed to be served. 

The Commission has examined and considered the proposed contract be- 
tween the Tide Water Power Company and the United States under which 
terms the United States proposes to lend to the said Power Company $142,- 
250.00, for which the said Power Company is to execute and deliver to the 
United States its note for said amount which is to be used for the construc- 
tion of said rural lines, and the Commission is of the opinion that the bor- 
rowing of said money and the execution of said contract and note is for a 
lawful object within the corporate purpose of the utility, is compatible with 
public interest, is necessary and appropriate for, or consistent with, the 
proper performance by the utility of its service to the public as such utility, 
and will not impair its ability to perform that service, and is reasonably 
necessary and appropriate for such purpose, and that same should be ap- 
proved, upon the condition that nothing herein shall be construed to imply 
any guarantee or obligation on the part of the State of North Carolina as to 
the payment of the said note of $142,250.00. 

Wherefore, it is ordered: 

First — That a Certificate of Public Convenience and Necessity be and the 
same is hereby granted to the Tide Water Power Company to construct and 
operate the rural lines as set out in the exhibit filed with the petition in 
this cause; 

Second — That the said Tide Water Power Company is hereby authorized 
and empowered to execute a note for the sum of $142,250.00, payable to the 
United States, to be used for the purposes hereinbefore mentioned; and. 

Third — That the proposed contract between the said Power Company and 
the United States, setting forth the terms and conditions under which said 
loan is made by the United States to said Power Company, is hereby ap- 
proved, and the said Power Company authorized and empowered to execute 
same. 

This 20th day of February, 1936. 

Attest: Stanley Winborne, 

(S) R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 672. 

AN APPLICATION OF THE TIDE WATER POWER COMPANY TO THE 
UTILITIES COMMISSION OF THE STATE OF NORTH CAROLINA FOR 
APPROVAL OF AGREEMENT FOR PURCHASING SERVICES. 

This matter comes before the Utilities Commission upon an application 
of the Tide Water Power Company for approval of a contract in writing for 
purchasing services between the Tide Water Power Company and the Util- 



44 ]Sr. C. Utilities Commission 

ities Purchasing and Supply Corporation, dated the 17th day of August, 
1936, and for authority to execute said written contract by the Tide Water 
Power Company. 

And it appearing to the Commission that the contract is one for services 
in the purchasing of apparatus, supplies and materials by the Utilities Pur- 
chasing and Supply Company on behalf of the Tide Water Power Company, 
and that the said contract provides for the payment of fees in connection 
with said service. 

The Commission has examined and considered the proposed contract be- 
tween the Tide Water Power Company and the Utilities Purchasing and 
Supply Corporation, and the Commission is of the opinion that the said 
contract is in all respects compatible with public interest, is appropriate for 
and consistent with the proper performance by the utility of its services 
to the public as such utility, and that the same will not impair its ability 
to perform that service, and that the payment of one and one-half per cent 
(1V2%) of the aggregate amount paid for apparatus, supplies and materials 
is a reasonable charge for the services to be rendered, and that the con- 
tract will not deplete or reduce the earnings or assets of the Tide Water 
Power iCompaniy, but, on the contrary, should be beneficial and result iq); 
substantial savings in the purchase of apparatus, supplies and materials. 

Wherefore, it is ordered: 

1. That the contract between the Utilities Purchasing and Supply Corpora- 
tion and the Tide Water Power Company, dated the 17th day of August, 1936, 
a copy of which has been filed by the Applicant with the petition in this 
matter, be and the same is hereby approved. 

2. That the Tide Water Power Company be and the same is hereby au- 
thorized and empowered to execute and deliver the said contract. 

3. That nothing herein contained shall be construed to imply any guar- 
antee or obligation on the part of the State of North Carolina in connection 
with the performance by the Tide Water Power Company of said contract 
or any part thereof. 

This 17th day of August, 1936. 

Attest: Stanley Winborne, 

(S) R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 805. 

AN APPLICATION OF THE TIDE WATER POWER COMPANY TO THE 
UTILITIES COMMISSION OP THE STATE OF NORTH CAROLINA FOR 
APPROVAL OF AGREEMENTS FOR MANAGERIAL AND CONSTRUC- 
TION SERVICES AND PERMISSION TO PURCHASE STOCK. 

Order 

This matter comes before the Utilities Commission upon the application 
of the Tide Water Power Company for authority to purchase 1,870 shares 
of stock of the Utility Mutual Management Association, Inc., at and for the 
price of $24,777.50, and for approval of a contract in writing between the 
Tide Water Power Company and E. M. Gilbert Engineering Corporation, of 
date September 1, 1936, and for approval of a contract in writing between 



Decisions and Adjustments of Complaints 45 

the Tide Water Power Company and the Utility Management Corporation, 
of date September 1, 1936, and for authority to execute and deliver said 
written contracts by the Tide Water Power Company. 

And it appearing to the Commission that the Utility Mutual Management 
Association, Inc., has been incorporated under the laws of the State of Dela- 
ware, and that the entire capital stock thereof is owned by operating com- 
panies of the Associated Gas and Electric Group; that the Utility Mutual 
Management Association, Inc., owns the entire capital stock of the Utilities 
Purchasing and Supply Corporation, E. M. Gilbert Engineering Corporation 
and the Utility Management Corporation; that the operating companies by 
reason of stock ownership in the Utility Mutual Management Association, 
Inc., are entitled to participating certificates in the Utilities Purchasing and 
Supply Corporation, E. M. Gilbert Engineering Corporation, and the Utility 
Management Corporation, by means of which the operating companies own- 
ing stock in the Utility Mutual Management Association, Inc., share pro- 
rata in the profits of each of said Utilities Purchasing Supply Corporation, 
E. M. Gilbert Engineering Corporation, and the Utility Management Corpora- 
tion in proportion to sums paid into each of the three said companies for 
services. 

And it further appearing to the Commission that the contracts between 
the Tide Water Power Company and the Utility Management Corporation 
and the Tide Water Power Company and the E. M. Gilbert Engineering Cor- 
poration provide for the payment of fees in connection with services ren- 
dered. 

The Commission has examined and considered the entire plan, and finds 
that it is a mutual plan by means of which the profits of each of the said 
service companies are divided pro-rata among the operating companies 
owning stock in the Utility Mutual Management Association, Inc., in propor- 
tion to the sums paid in for services rendered by the respective service com- 
panies. And the Commission has also examined and considered the pro- 
posed contracts between the Tide Water Power Company and E. M. Gilbert 
Engineering Corporation and the Tide Water Power Company and ^he Util- 
ity Management Corporation, and the Commission is of the opinion that 
the purchase of a said stock and the acceptance of the participating cer- 
tificates and the execution and delivery of said contracts between the Tide 
Water Power Company and E. M. Gilbert Engineering Corporation and the 
Tide Water Power Company and the Utility Management Corporation are 
each and collectively in all respects compatible with public interest, appro- 
priate for and consistent with the proper performance by the utility of its 
service to the public as such utility and that the same will not impair its 
ability to perform that service, and that the fixed charges in said contracts 
are reasonable for the services to be rendered, and that the entire plan, in- 
cluding the said contracts, will not unreasonably deplete or reduce the earn- 
ings or assets of the Tide Water Power Company, but, on the contrary, should 
be beneficial to and for the best interest of the Tide Water Power Company. 

Wherefore, it is ordered: 

1. That the Tide Water Power Company be and it is hereby authorized 
and empowered to purchase 1,870 shares of the capital stock of the Utility 
Mutual Management Association, Inc., at and for the price of $24,777.50, and 



46 ]^. C. Utilities Commission 

to pay therefor either on open account or by the execution and delivery of 
a note, but in the event a note is issued notification thereof, as provided by 
law, shall be immediately given to the Commission, but no petition need be 
filed and no other proceedings had in connection therewith. 

2. That the contract between the Tide Water Power Company and E, M. 
Gilbert Engineering Corporation, dated September 1, 1936, a copy of which 
has been filed by the Applicant with the petition in this matter, be and the 
same is hereby approved to be effective as of September 1, 1936, and the Tide 
Water Power Company is hereby authorized and empowered to execute 
and deliver the same. 

3. That the contract between the Tide Water Power Company and the 
Utility Management Corporation, dated September 1, 1936, a copy of which 
has been filed by the Applicant with the petition in this matter, be and the 
same is hereby approved to be effective as of September 1, 1936, and the Tide 
Water Power Company is hereby authorized and empowered to execute and 
deliver the same. 

4. That nothing herein contained shall be construed to imply any guar- 
antee or obligation on the part of the State of North Carolina in connection 
with the performance by the Tide Water Power Company of said purchase 
or said contracts or any part thereof. 

This 25th day of September, 1936. 

Attest: Stanley Winborne, 

(S) R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 841. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE BONDS AND STOCK. 

Order 
This cause coming on this day to be heard again upon the papers formerly 
read and upon the Supplemental Petition of Virginia Electric and Power 
Company, verified the 14th day of May, 1935, which Supplemental Petition 
is hereby filed, and being argued by counsel, and the Commission being fully 
advised in the premises, it is hereby 

Ordered, adjudged and decreed, That the order heretofore entered herein 
under date of July 18, 1934, be and the same hereby is, amended by striking 
out the words in parentheses in the second paragraph thereof, and the words 
"except as to common stock increase" in the third paragraph thereof; and 
by adding the following proviso, to-wit: " Provided that nothing in this or- 
der contained shall be deemed to confer any authority to issue bonds or 
stock over and above the authority conferred by the order heretofore en- 
tered herein on April 9, 1934"; and 

It is FURTHER ORDERED, That this proceeding be, and the same hereby is, 
closed and transferred to the Docket of Ended Causes. 

By order of the Commission: Stanley Winborne, 

This May 15, 1935. Utilities Commissioner. 

Docket No. 49. 



Decisions and Adjustments of Complaints 47 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUER BONDS. 

This cause coming on this day to be heard upon the papers formerly read 
and upon the motion of Virginia Electric and Power Company, by counsel, 
that the time for filing the report required by the orders heretofore entered 
herein on May 16, 1935, July 18, 1934, and September 11, 1934, be extended 
so as to allow the time necessary for completion of the final figures for use 
therein, and the Commission being fully advised in the premises, it is hereby 

Ordered, adjudged and decreed. That the orders heretofore entered herein 
on May 16, 1934, July 18, 1934, and September 11, 1934, are hereby amended 
so that the time for filing the report showing the results of the transactions 
had pursuant to the said orders is hereby extended for such reasonable time 
as may be necessary for the completion of final figures and the orderly prep- 
aration of said report. 

This December 20, 1934. 

(Seal) Stanley Winborne, 

Docket No. 97. Utilities Commissioner. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

This cause came on this day to be heard upon the application of Virginia 
Electric and Power Company, verified on the sixth day of March, 1935, and 
the several exhibits thereto annexed, marked Exhibits I and II, respectively, 
all of which are hereby filed, and being argued by counsel, and the Commis- 
sion being fully advised in the premises, and finding that (a) the proposed 
plan to call for redemption and to redeem the $3,446,000 principal amount 
outstanding, as of February 28, 1935, of the Company's Convertible 5i/^% 
bonds, due March 1, 1942, and (b) the proposed extension of the time within 
which the existing privilege may be exercised to convert said Convertible 
Bonds into First and Refunding Mortgage Gold Bonds, Series A 5%, are re- 
lated and proper elements of a plan, the purpose of which is the discharge 
or lawful refunding of obligations of the Company, and further finding that 
said plan (c) is for a lawful object within the corporate purposes of the 
Company, (d) is compatible with the public interest, (e) is necessary or 
appropriate for or consistent with the proper performance by the Company 
of its services to the public as a public utility and will not impair its ability 
to perform that service, and (f) is reasonably necessary and appropriate 
for such purpose, it is hereby: 

Ordered, adjudged and decreed. That said plan be, and the same hereby is, 
approved, and that the Virginia Electric and Power Company be, and hereby 
is, authorized and empowered 

(1) To call for redemption, and to redeem, as of April 1, 1935, all of its 
Ten-Year 5^^% Secured Convertible Gold Bonds, aggregating the principal 
sum of $3,446,000, issued and outstanding under the Company's Indenture 
dated as of March 1, 1932, to the Chase National Bank of the City of New 
York, as Trustee, as the Company by the provisions of said Indenture is au- 
thorized to do at any time upon thirty days' notice, at their prevailing re- 



48 ]S^. C. Utilities Commission 

demption price, which from March 1, 1935, to February 28, 1938, is 102% of 
their principal amount, plus the interest accrued thereon to the date of their 
redemption. 

(2) To provide for and allow the exercise of the conversion privilege con- 
tained in Article 2 of said Indenture whereby the bearer or registered owner 
of any one or more of said bonds may elect to convert said bond or bonds 
into an equal aggregate principal amount of the Company's First and Re- 
funding Mortgage Gold Bonds, Series A 5%, dated October 1, 1925, and due 
October 1, 1955, and now pledged under said Indenture as security for said 
Convertible Bonds, and at the same time to receive a premium of $50 in cash 
for each $1,000 principal amount of bonds so converted, subject to an ad- 
justment of accrued and unpaid interest as therein provided. 

(3) To extend the time within which said conversion privilege may be 
exercised so as to allow the exercise of said privilege at any time up to and 
including May 1, 1935, except that no interest for the period from and after 
April 1, 1935, the redemption date, shall be paid or allowed upon any of said 
Convertible Bonds converted after that date. 

Provided, hom'ever. That nothing in the order contained shall be construed 
to obligate the State of North Carolina to pay or guarantee, in any manner 
whatsoever, the bonds aforesaid, or be construed or represented as involv- 
ing an expression of opinion on the part of this Commission as to the value 
of said bonds; and 

Further provided. That on or before June 15, 1935, the said Company shall 
file with this Commission a report showing the results of the transactions 
had pursuant to this order; and 

Further provided. That this proceeding be, and the same hereby is, con- 
tinued generally on the docket of the Commission for the purpose of the 
filing of such report and for any other action that may be found or deemed 
necessary or advisable. 

This March 7th, 1935. Stanley Winborne, 

Docket No. 97. Utilities Commissioner. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE BONDS. 

Order 

This cause came on this day to be heard again upon the papers formerly 
read and upon the Report and Petition of Virginia Electric and Power Com- 
pany verified the 14th day of May, 1935, which Report and Petition is hereby 
filed, and was argued by counsel, and it appearing to the Commission that 
the various acts, transactions and proceedings referred to in the said Report 
and Petition are a proper and sufficient compliance with the order hereto- 
fore entered herein on May 16, 1934, July 18, 1934, September 11, 1934, and 
December 20, 1934; it is 

Adjudged, ordered and decreed, That the various acts, transactions and 
proceedings referred to in the said Report and Petition be, and the same 
hereby are, accepted as a proper and sufficient compliance with the said or- 
ders heretofore entered herein. 



Decisions and Adjustments of Complaints 49 

It is FURTHER ORDERED, That this proceeding is closed and transferred to 
the Docket of Ended Causes with leave reserved to the Commission and to 
the Company to reopen the same at any time if due cause therefor should 
appear. 

By order of the Commission: 

This May 15th, 1935. Stanley Winborne, 

Docket No. 97. Utilities Commissioner. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 

This cause came on this day to be heard again upon the papers formerly 
read and upon the Report of Virginia Electric and Power Company verified 
the 14th day of May, 1935, which Report is hereby filed, and was argued by 
counsel, and it appearing to the Commission that the various acts, trans- 
actions and proceedings referred to in the said Report are a proper and suf- 
ficient compliance with the order heretofore entered herein on March 7, 
1935; it is 

Adjudged, ordered and decreed, That the various acts, transactions and 
proceedings referred to in the said Report be, and the same hereby are, ac- 
cepted as a proper and sufficient compliance with the said order heretofore 
entered herein. 

It is FURTHER ORDERED, That this proceeding is closed and transferred to 
the Docket of Ended Causes with leave reserved to the Commission and to 
the Company to reopen the same at any time if due cause therefor should 
appear. 

By order of the Commission: 

This May 15, 1935. Stanley Winborne, 

Docket No. 97-A. Utilities Commissioner. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 

This day came Virginia Electric and Power Company and presented its 
application verified under date of May 14, 1935, by J. G. Holtzclaw, Presi- 
dent, under the provisions of the Public Utilities Act of 1933 (Acts of 1933, 
Chapter 307), asking for authority to prolong the privilege of conversion at- 
tached to its Secured Convertible Ten-Year 5 % % Bonds and for the ap- 
proval of a plan for the redemption and conversion of a part of said Secured 
Convertible Ten-Year 5 1/^ % Bonds and for any other legal authority that 
may be necessary from this Commission therefor and there was presented 
with the application an exhibit attached thereto and identified and referred 
to therein, and upon motion of the Virginia Electric and Power Company, 
by Hunton, Williams, Anderson, Gay and Moore, its counsel, through T. 
Justin Moore and George D. Gibson, of Counsel; 

It is ordered, That said application and the exhibits therewith be and the 
same hereby are filed. 



50 ^. C. Utilities Commission 

Thereupon, This matter coming on to be heard and considered, and being 
argued by counsel, and the Commission being fully advised in the premises, 
and the Commission finding that (1) the proposed plan to call for redemp- 
tion and to redeem $4,629,000 principal amount of the Company's outstand- 
ing Secured Convertible Ten-Year 5i/2% Bonds, due July 1, 1944, (2) any 
extension of time within which the privilege to convert such bonds into 
First and Refunding Mortgage Bonds of the Company, Series A 5%, may be 
exercised that the Company may determine to grant up to and including, 
but not later than August 1, 1935, and (3) the proposed issue of the Com- 
pany's unsecured promissory notes in amounts up to and including, but not 
exceeding $3,500,000, in furtherance of said plan of redemption, are all re- 
lated and essential elements of a plan for a discharge or lawful refunding 
of obligations of the Company, and that said plan (a) is for a lawful ob- 
ject within the corporate purposes of the Company, (b) is compatible with 
the public interest, (c) is necessary or appropriate for or consistent with 
the proper performance by the Company of its services to the public as a 
public utility, and will not impair its ability to perform that service, and 
(d) is reasonably necessary and appropriate for such purpose, it is hereby 

Ordered, adjudged and decreed, That said plan be and the same hereby is, 
approved and that Virginia Electric and Power Company be, and hereby is, 
authorized and empowered: 

(1) To call for redemption and to redeem as of July 1, 1935, up to and 
including, but not exceeding, $4,500,000 principal amount of its Secured Con- 
vertible Ten-Year 5%% Bonds, plus $129,000 principal amount of such bonds, 
funds for the redemption of which are on hand with the Trustee under the 
Indenture securing such bonds, as an installment of Sinking Fund, under 
and pursuant to the provisions of the Indenture from the Company to the 
Chase National Bank of the City of New York, as Trustee, dated as of July 
2, 1934, securing such bonds; 

(2) To provide for and allow the exercise of the conversion privilege con- 
ferred upon such bonds by the provisions thereof and of the said Indenture, 
whereby the holders of such Secured Convertible Ten-Year 5V2% Bonds may 
convert the same into either an equal aggregate principal amount of the 
Company's First and Refunding Mortgage Bonds, Series A 5%, together with 
all unmatured appurtenant coupons plus the sum of $50 in cash for each 
$1,000 principal amount of bonds being converted, plus the difference be- 
tween the interest accrued at the rate of 5%% per annum on the Secured 
Convertible Ten-Year 5V2% Bonds from January 1, 1935, to the conversion 
date and the interest accrued at the rate of 5% per annum on said Series A 
Bonds from April 1, 1935, to the conversion date, or into shares of common 
stock of the Company at the basic conversion price of 100 shares for each 
$1,000 principal amount of bonds being surrendered for conversion, plus the 
interest accrued at the rate of 5 1/^ % per annum on the Secured Convertible 
Ten-Year 5 1/^ % Bonds from January 1, 1935, to the conversion date. 

(3) To extend the time within which the privilege of converting said 
$4,629,000 principal amount of Secured Convertible Ten-Year 5%% Bonds 
into First and Refunding Mortgage Bonds of the Company, Series A 5%, 
may be exercised for any additional period up to and including, but not 
later than August 1, 1935, upon the same terms as nearly as may be as pro- 



Decisions and Adjustments of Complaints 61 

vided in said Indenture, except that no interest for the period from and after 
July 1, 1935, shall be paid or allowed upon any of said Convertible Bonds con- 
verted after that date. 

(4) To enter into and comply with the proposed contract (a copy of which 
is filed as Exhibit "A" to Exhibit I filed with the application in this case) 
with the Chase National Bank of the City of New York and the Bank of 
Manhattan Company, and, as provided by said contract and subject to the 
terms and conditions thereof, to execute, issue and deliver its unsecured 
promissory notes for periods not to exceed twenty-three months, bearing in- 
terest at the rate of 8 ^/^ % per annum, in an aggregate amount not to exr 
ceed $3,500,000 for the purpose of providing a portion of the funds which 
may be required for the redemption of such of said Convertible Bonds as 
may be presented for payment in accordance with the redemption call, pro- 
vided that the proceeds to the Company of any notes that may be issued un- 
der authority hereof to the said Banks, shall, as provided in said contract, 
be used only for the purpose of redeeming said Secured Convertible Ten- 
Year 5V2% Bonds; 

Provided, however, That nothing in the order contained shall be construed 
to obligate the State of North Carolina to pay or guarantee, in any manner 
whatsoever, the bonds aforesaid, or be construed or represented as involving 
an expression of opinion on the part of this Commission as to the value of 
said bonds; and 

Further provided, That on or before September 15, 1935, the said Company 
shall file with this Commission a report showing the results of the transac- 
tions had pursuant to this order; and 

Further provided. That this proceeding be, and the same hereby is, con- 
tinued generally on the docket of the Commission for the purpose of the 
filing of such report and for any other action that may be found or deemed 
necessary or advisable. 

By order of the Commission: 

This May 15th, 1935. Stanley Winborne, 

Docket No. 390. Utilities Commissioner. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 
This cause came on this day to be heard again upon the papers formerly 
read and upon the Report and Supplemental Application of Virginia Electric 
and Power Company verified under date of July 15, 1935, and upon motion 
of Virginia Electric and Power Company, by Hunton, Williams, Anderson, 
Gay and Moore, its counsel, through T. Justin Moore and George D. Gibson, 
of counsel, it is 

Ordered, That said Application and the exhibit attached thereto be and the 
same hereby are filed. 

Thereupon, this matter coming on to be heard and considered, and being 
argued by counsel, and the Commission being fully advised in the premises, 
and it appearing that the prayers of the Application should be granted, it 
is hereby 



52 ^. C. Utilities Commission 

Ordered, adjudged and decreed: 

1. The action of Virginia Electric and Power Company in extending to 
and including July 22, 1935, the period within which its Secured Convertible 
Ten-Year 5i/^% Bonds that were called for redemption on July 1, 1935, might 
be converted into the Company's First and Refunding Mortgage Bonds, Se- 
ries A 5%, upon the same terms as nearly as might be as provided in the 
Indenture securing, said Convertible Bonds, except that interest on such 
Convertible Bonds so called for redemption should not be paid or allowed 
after June 21, 1935, is hereby approved and accepted as being in proper com- 
pliance with the Commission's order heretofore entered herein on May 15, 
1933; 

2. Virginia Electric and Power Company is hereby authorized and em- 
powered to extend from time to time, for any further period or periods up 
to and including but not later than September 14, 1935, the time within 
which conversions of such Convertible Bonds so called for redemption on 
July 1, 1935, may be made into said Series A Bonds, upon the same terms 
as nearly as may be as provided in the Indenture securing such Convertible 
Bonds, except that interest on such Convertible Bonds so presented for con- 
version shall not be paid or allowed for the period from and after June 21, 
1935, and it is further authorized and empowered to agree from time to time 
with any holders of such Convertible Bonds to make such conversions upon 
the deposit of such Convertible Bonds on or before September 14, 1935; 

3. The time for filing the report required by said order of May 15, 1935, 
is hereby extended to and including October 15, 1935; 

4. The Clerk of this Commission shall furnish five attested copies of this 
order to said Company, and, upon being furnished with the necessary copy 
of said Report and Supplemental Application, shall furnish to the Company 
one attested copy thereof, in both cases without charge therefor. 

By order of the Commission: 

This July 16th, 1935. Stanley Winborne, 

Docket No. 390. Utilities Commissioner. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 

This cause came on this day to be heard upon the papers formerly read 
and upon the motion of Virginia Electric and Power Company, by counsel, 
that the time for filing the report required by the orders heretofore entered 
herein on May 15, 1935, and July 16, 1935, be extended so as to allow the time 
necessary for completion of such report, and the Commission being fully 
advised in the premises, it is hereby 

Ordered, adjudged and decreed. That the orders heretofore entered herein 
on May 15, 1935, and July 16, 1935, be and the same hereby are amended so 
that the time for filing the report showing the results of the transactions had 
pursuant to the said orders is hereby extended to November 1, 1935. 

This October 4, 1935. 

By order of the Commission: Stanley Winborne, 

(S) R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 390. 



Decisions and Adjustments of Complaints 53 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 

This cause came on this day to be heard again upon the papers formerly 
read and upon the Report of Virginia Electric and Power Company verified 
the 31st day of October, 1933, which Report is hereby filed, and was argued 
by counsel, and it appearing to the Commission that the various acts, trans- 
actions and proceedings referred to in the said Report are a proper and suf- 
ficient compliance with the orders heretofore entered herein on May 15, 1935, 
July 16, 1935, and October 4, 1935, it is 

Adjudged, ordered and decreed. That the various acts, transactions and 
proceedings referred to in the said Report be, and the same hereby are, ac- 
cepted as a proper and sufficient compliance with the said orders heretofore 
entered herein. 

It is FURTHER ORDERED, That this proceeding is closed and transferred to 
the file of Ended Causes, with leave reserved to the Commission and to the 
Company to reopen same at any time if due cause therefor should appear. 

By order of the Commission: 

This November 4, 1935. Stanley Winborne, 

(S) R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 390. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 

This day came Virginia Electric and Power Company and presented its 
application verified under date of July 15, 1935, under the provisions of the 
Public Utilities Act of 1933 (Acts of 1933, Chapter 307), asking for author- 
ity to prolong the privilege of conversion attached to its Secured Conver- 
tible Ten-Year 5 i/^ % Bonds that have been called for redemption on August 
1, 1935, and upon motion of Virginia Electric and Power Company, by Hun- 
ton, Williams, Anderson, Gay and Moore, its counsel, through T. Justin 
Moore and George D. Gibson, of counsel, it is 

Ordered, That said application and the exhibit filed therewith be and the 
same hereby are filed. 

Thereupon, This matter coming on to be heard and considered and being 
argued by counsel, and the Commission being fully advised in the premises, 
and it appearing that the prayers of the application should be granted, it is 
hereby 

Adjudged, ordered and decreed: 

1. Virginia Electric and Power Company is hereby authorized and empow- 
ered to extend from time to time, for any further period or periods, up to 
and including but not later than September 14, 1935, the time within which 
conversions of its Secured Convertible Ten- Year 5 1/^ % Bonds that have been 
called for redemption on August 1, 1935, may be made into the Company's 
First and Refunding Mortgage Bonds, Series A 5% (but not into Common 



54 ]^. C. Utilities Commission 

Stock) upon the same terms as nearly as may be as provided in the Inden- 
ture securing such Convertible Bonds, except that interest on such Converti- 
ble Bonds so presented for conversion shall not be paid or allowed for the 
period from and after July 22, 1935, and it is further authorized and empow- 
ered to agree from time to time with any holders of such Convertible Bonds 
so called for redemption on August 1, 1935, to make such conversions upon 
the deposit of such Convertible Bonds at any time on or before September 
14, 1935; 

2. Virginia Electric and Power Company shall file herein on or before Oc- 
tober 15, 1935, a report showing the results of the transactions had in pur- 
suance of this order and to such end this proceeding hereby is continued gen- 
erally on the docket of the Commission for the purpose of the filing of such 
report, and for any other action that may be found or deemed necessary or 
advisable; 

3. The Clerk of this Commission shall furnish five attested copies of this 
order, and, upon being supplied with a copy of the application herein, shall 
furnish one attested copy thereof to the Company in each case without charge 
therefor. 

By order of the Commission: 

This July 16th, 1935. Stanley Winborne, 

Docket No. 478. Utilities Commissioner. 

IN THE MATTER OP VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 

This cause came on this day to be heard upon the papers formerly read 
and upon the motion of Virginia Electric and Power Company, by counsel, 
that the time for filing the report required by the order heretofore entered 
herein on July 16, 1935, be extended so as to allow the time necessary for com- 
pletion of such report, and the Commission being fully advised in the prem- 
ises, it is hereby 

Ordered, adjudged and decreed. That the order heretofore entered herein 
on July 16, 1935, be and the same hereby is amended so that the time for 
filing the report showing the results of the transactions had pursuant to the 
said order is hereby extended to November 1, 1935. 

This October 4, 1935. 

By order of the Commission: Stanley Winborne, 

(S) R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 478. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE SECURITIES. 

Order 

This cause came on this day to be heard again upon the papers formerly 

read and upon the Report of Virginia Electric and Power Company verified 

the 31st day of October, 1935, which Report is hereby filed, and was argued 

by counsel, and it appearing to the Commission that the various acts, trans- 



Decisions and Adjustments of Complaints 55 

actions and proceedings referred to in the said Report are a proper and suf- 
ficient compliance with the order heretofore entered herein on July 16, 
1935, and October 4, 1935, it is 

Adjudged, okdeked and decreed, That the various acts, transactions and 
proceedings referred to in the said Report be, and the same hereby are, 
accepted as a proper and sufficient compliance with the said orders hereto- 
fore entered herein. 

It is FURTHER ORDERED, That this proceeding is closed and transferred to the 
file of Ended Causes with leave reserved to the Commission and to the Com- 
pany to reopen same at any time if due cause therefor should appear. 

By order of the Commission: 

This November 4, 1935. Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 478. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY, 
ON APPLICATION FOR AUTHORITY TO ISSUE AND SELL BONDS. 

Order 

This day came Virginia. Electric and Power Company, hereinafter some- 
times called the said Company, and presented its application verified under 
date of September 26, 1935, by J. G. Holtzlaw, President, under the pro- 
visions of Chapter 307 of the Acts of Assembly of 1933 (Sections 1112 (1) 
(30), inclusive, Michie's Code of 1931, Supplement of 1933), asking for au- 
thority to execute a new mortgage, issue and sell up to $38,000,000 principal 
amount of bonds thereunder and apply the proceeds to various corporate 
purposes, and there were presented with the application and referred to and 
identified therein exhibits marked A-D, inclusive; and upon motion of the 
said Company, by Hunton, Williams, Anderson, Gay & Moore, its counsel, 
through T. Justin Moore, Edmund M. Preston and George D. Gibson, of 
counsel; 

It is ordered, That said application and exhibits be, and they hereby are, 
filed, that the matter be, and it hereby is, docketed and set for immediate 
consideration by the Commission, upon the application, exhibits and repre- 
sentations of counsel, without formal hearing; 

Thereupon, This matter came on this day to be heard and considered, upon 
said application, exhibits and representations of counsel, and was argued by 
counsel; 

Upon consideration whereof. The Utilities Commission finds that the said 
Company is a corporation owning or operating in this State equipment or 
facilities for producing, generating, transmitting, delivering or furnishing 
electricity; and it appearing from said application, exhibits and representa- 
tions of counsel and investigation and consideration by the Commission that 
the proposed issue and sale of not exceeding $38,000,000 principal amount of 
the said Company's First and Refunding Mortgage Bonds, Series A 4, to 
be dated as of November 1, 1935, to be due November 1, 1955, and to be 
secured by an Indenture of Mortgage, to be dated as of November 1, 1935, 
covering all or the principal part of the properties and franchises of said 



56 ]^. C. Utilities Commission 

Company, are for lawful corporate purposes of the said Company, to-wit, 
the discharge or lawful refunding of its outstanding obligations and the ex- 
tension and improvement of its facilities, are compatible with public interest, 
are necessary or appropriate for or consistent with the proper performance 
by the said Company of its service to the public as a public utility and will 
not impair its ability to perform that service, and are reasonably necessary 
and appropriate for such purposes (said purposes being more particularly 
specified hereinbelow) ; the Commission is of the opinion that the prayers of 
the application should be granted and that the proposed transactions, in- 
cluding the issuance of securities as proposed, should be approved and au- 
thorized; 

It is therefore adjudged, ordered and decreed, That Virginia Electric and 
Power Company be, and it hereby is, authorized, empowered and permitted 
to: 

(1) Execute and create a nev/ mortgage or deed of trust to be dated as of 
November 1, 1935, conveying all the properties and franchises of said Com- 
pany (or any part thereof not less than all the principal physical properties 
and franchises used and useful to it in the conduct of its electric light and 
power, gas, bus and street railway operations) whether now owned or 
hereafter acquired, to secure bonds of said Company to be issued thereunder 
from time to time in series, without limit (by the terms of said mortgage or 
deed of trust) as to aggregate amount; 

(2) Issue not exceeding $38,000,000, principal amount of bonds under said 
mortgage or deed of trust, to be known as said Company's First and Re- 
funding Mortgage Bonds, Series A 4%, to be dated as of November 1, 1935, 
to be due November 1, 1955, to bear interest at the rate of four per centum 
per annum from November 1, 1935, until paid, and to have the characteristics 
more fully to be defined in said mortgage or deed of trust, including pro- 
visions for a sinking fund and for the redemption of such bonds at the option 
of said Company (hereinafter sometimes called the said Bonds) ; 

(3) Sell the said Bonds or any part thereof to an underwriting group at a 
price to said Company of not less than 98 (which underwriting group may 
include Stone & Webster and Blodget, Inc., an affiliate of said Company, and 
any sale or contract of sale to, or to any group including, said corporation 
is hereby authorized, permitted and approved, provided that the price to said 
Company is not less than 98); 

(4) Use and apply the proceeds of such sale for and to the following pur- 
poses only: 

(a) The payment of the actual and reasonable expenses of said Company 
in connection with the sale of said Bonds and the refunding plan herein au- 
thorized; 

(b) The redemption of $25,137,000 principal amount of said Company's 
outstanding First and Refunding Mortgage Gold Bonds, Series A 5%, due 
October 1, 1935, at their redemption price of 104; 

(c) The redemption of $6,540,000 principal amount of said Company's out- 
standing First and Refunding Mortgage Gold Bonds, Series B 5% due June 
1, 1954, at their redemption price of 105; 

(d) The deposit with the trustee under the mortgage securing Norfolk 
and Portsmouth Traction Company First Mortgage Five Per Cent Thirty 



I 



Decisions and Adjustments of Complaints 57 

Year Gold Bonds, due June 1, 1936, or to reimburse to treasury of said Com- 
pany for the deposit with such trustee, of $358,000 to provide for the paj^- 
ment of the principal at maturity of an equal principal amount of such 
bonds; 

(e) The purchase and retirement, or to reimburse the treasury of said 
Company for the purchase and retirement, of not exceeding $1,297,000 prin- 
cipal amount of The Norfolk Railway and Light Company First Consoli- 
dated Mortgage Five Per Cent Gold Bonds due November 1, 1949, at a price 
to the holders of such bonds of not exceeding 115; 

(f) The purchase and retirement, or to reimburse the treasury of said 
Company for the purchase and retirement, of not exceeding $307,000 prin- 
cipal amount of Norfolk Street Railroad Company First Mortgage Five Per 
Cent Gold Bonds due January 1, 1944, at a price to the holders of such bonds 
of not exceeding 115; 

(g) Capital additions and improvements increasing the said Company's 
electric generating capacity in its Twelfth Street Power Station at Rich- 
mond, Virginia, at an estimated cost of approximately $2,000,000 and not 
to exceed $2,500,000; 

(h) Any balance, if any, to proper corporate purposes of said Company 
permitted by law; 

Provided, however. That nothing in this order contained shall be construed 
to authorize the said Company to issue any notes or other evidences of in- 
debtedness (other than the said Bonds) that may be payable at periods of 
more than two years from the date thereof, unless authority therefor shall 
first have been obtained from this Commission; and 

Further provided. That nothing in this order contained shall relieve the 
said Company from its duty, if any, to effectuate registration of said Bonds 
with the Federal Securities and Exchange Commission prior to the issuance 
and sale thereof; and 

Further provided. That nothing in this order contained shall relieve the 
said Company from its duty to comply with the provisions of Section 167 of 
the Constitution and Section 3788 of the Code of Virginia, relating to filing 
with the State Corporation Commission of Virginia statements of proposed 
issues of bonds, if otherwise applicable; and 

Further provided, That nothing in this order contained shall be construed 
to obligate the State of North Carolina to pay or guarantee in any manner 
whatsoever any bonds authorized hereby, or be construed or represented as 
involving an expression of opinion on the part of this Commission as to the 
value of any such securities; and 

Further provided. That promptly after the registration statement to be 
filed by the said Company with the Federal Securities and Exchange Com- 
mission covering the issuance and sale of the said Bonds hereinbefore au- 
thorized shall have become effective, a copy thereof shall be filed as a sup- 
plemental exhibit in this proceeding, and a copy of each subsequent amend- 
ment, if any, of such registration statement shall be filed as a supplemental 
exhibit in this proceeding; and 

Further provided, That promptly after the execution of the new mortgage 
or deed of trust hereinabove authorized, said Company shall file a copy of 



58 ]^. C. Utilities Commission 

the executed form thereof as a supplemental exhibit in this proceeding; and 
Further provided, That promptly after the execution of any contract for 
the sale of the said Bonds hereinabove authorized to any underwriting group 
which includes Stone and Webster and Blodget, Inc., said Company shall 
file a copy of the executed form thereof as a supplemental exhibit in this 
proceeding; and 

Further provided, That on or before February 1, 1936, the said Company 
shall file with this Commission a report showing the results of the transac- 
tions had pursuant to this order; and 

Further provided, That the Commission reserves the exercise of each ju- 
risdiction as may be authorized by said Chapter 307 of the Acts of Assembly 
of 1933, with respect to any payment that may be made by the said Com- 
pany to Stone and Webster Engineering Corporation in connection with the 
aforesaid capital additions and improvements to the said Company's Twelfth 
Street Power Station at Richmond, Virginia; and 

Further provided, That nothing in this order contained shall be construed 
as adjudging, or expressing an opinion on, the status under the laws of 
North Carolina of any foreign corporation that may become the trustee un- 
der the new mortgage or deed of trust hereinabove authorized, or as exempt- 
ing such corporation from proper compliance with any requirements of any 
present or future law of North Carolina; and 

Further provided, That nothing in this order contained shall be construed 
as authorizing the issuance of any bonds exempt the Company's First and 
Refunding Mortgage Bonds, Series A 4%, in a principal amount not ex- 
ceeding $38,000,000 as authorized in Paragraph two hereof. 

Further provided. That the Clerk of this Commission shall furnish one at- 
tested copy of the application herein and six attested copies of this order 
without charge therefor, upon being furnished with the necessary copies by 
the said company; and 

Further provided, That this proceeding be, and the same hereby is, con- 
tinued on the docket of the Commission without day for the purpose of re- 
ceiving the supplemental exhibits and the report from the said Company 
herein required, and for any other action that may be found or deemed 
necessary or advisable. 

This 27th day of September, 1935. 

Stanley Winborne, 

By order of the Commission: Utilities Commissioner. 

Frank W. Hanft, 

By R. 0. Self, Chief Clerk. Associate Commissioner. 

Docket No. 536. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO ISSUE AND SELL BONDS 

Order 

This cause came on to be heard again upon the papers formerly read and 

upon the Report and Application of Virginia Electric and Power Company 

verified the 24th day of January, 1936, by J. G. Holtzclaw, President; and 

the Commission considering the same, together with (1) the conformed copy 



Decisions and Adjustments of Complaints 59 

of the Indenture dated November 1, 1935, from Virginia Electric and Power 
Company to The Chase National Bank of the City of New York, Trustee, (2) 
the conformed copy of the Agreement dated October 18, 1935, between Vir- 
ginia Electric and Power Company and Stone & Webster and Blodget, In- 
corporated, The First Boston Corporation, Brown Harriman & Co., Incor- 
porated, Blyth & Co., Inc., Kidder, Peabody & Co., Bonbright & Company, 
Incorporated, W. C. Langley & Co., Lazard Freres & Company, Incorporated, 
Lehman Brothers, White, Weld & Co., W. E. Hutton & Co., H. M. Byllesby 
and Company, Inc., Scott & Stringfellow, and Kuhn, Loeb & Co., and (3) the 
copy of the Amended Registration Statement and Prospectus under the 
Federal Securities Act of 1933, as amended, which three papers last aforesaid 
had heretofore been submitted to the Commission in this proceeding; and 
being of the opinion that the prayers of said Report and Application should 
be granted; 

It is ordered, adjudged and deicreeo. That said Report and Application, 
said copy of the Indenture dated November 1, 1935, said copy of the Agree- 
ment dated October 18, 1935, and said copy of the Amended Registration 
Statement and Prospectus, be, and they hereby are, filed among the papers 
of this proceeding; and 

It is further ordered, adjudged and decreed, That the copy of the con- 
tract between Virginia Electric and Power Company and Stone & Webster 
Engineering Corporation, heretofore filed with this Commission as a part of 
the record in Case No. 49, shall be deemed to be filed likewise among the 
papers of this proceeding, and that said contract be, and the same hereby is 
approved; and 

It is further ordered, That said Report and Application be, and the same 
hereby is, accepted as and for a final report in this proceeding; and that 
this proceeding be, and the same hereby is, closed and transferred to the 
docket of ended causes, with leave reserved, however, to the Commission 
and to Virginia Electric and Power Company to re-open the same at any 
time if due cause therefor should appear. 

This the 27th day of January, 1936. 

Stanley Winborne, 

Utilities Commissioner. 

Docket No. 536. 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO PAY A DIVIDEND AT THE RATE 
OF 35 CENTS PER SHARE ON THE COMMON STOCK DURING THE 
CALENDAR YEAR 1935. 

Order 

This day come Virginia Electric and Power Company, hereinafter some- 
times called the Company, and presented its application verified under date 
of November 6, 1935, by J. G. Holtzclaw, President, under the provisions of 
Chapter 307 of the Acts of Assembly of 1933 (Sections 112 (1)- (36), in- 
clusive, Michie's Code of 1935), asking for authority to pay a dividend at the 
rate of thirty-five cents (35c) per share on the common stock of said Com- 
pany outstanding and on such additional common stock as may be issued 



60 ^. C. Utilities Commission 

under the provisions of the Merger Agreement between said Company and 
the City Gas Company of Norfolk, dated June 9, 1930, and there were pre- 
sented with said application and referred to and identified therein exhibits 
marked "A" and "B"; and upon motion of the said Company, by Hunton, Wil- 
liams, Anderson, Gay and Moore, its counsel, through T. Justin Moore, of 
counsel; 

It is ordeked. That said application and exhibits "A" and "B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for im- 
mediate consideration by the Commission, upon the application, exhibits 
and representations of counsel, without formal hearing; 

Thereupon, This matter came on this day to be heard and considered, upon 
the said application, exhibits and representations of counsel and upon the 
oral statements and representations of said J. G. Holtzclaw, President of 
said Company, who personally appeared with said counsel before this Com- 
mission, and was argued by counsel; 

Upon consideration whereof. The Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this State equip- 
ment or facilities for producing, generating, transmitting, delivering or fur- 
nishing electricity; and it appearing from said application, exhibits and 
representations, and from the investigation and consideration by the Com- 
mission, that the Company's capital represented by its 2,788,425 shares with- 
out par value of common stock (including stock outstanding and such addi- 
tional common stock as may be issued under the provisions of the Merger 
Agreement between the Company and City Gas Company of Norfolk, dated 
June 9, 1930) as shown by its books, amounts to the sum of $15,137,260; that 
the current net earnings of the Company (after setting aside suitable appro- 
priations for Retirement Reserve, as authorized by the Board of Directors, 
and the amount required for the payment of preferred dividends) available 
for common dividends and surplus for the twelve months ending September 
30, 1935, amounted to the sum of $1,625,253.02; that the current net earnings 
for the nine months for the calendar year 1935 available for. common divi- 
dends and surplus, after provision for Retirement' Reserve and preferred 
dividends, amounted to the sum of $1,188,646.13; that the dividend proposed 
to be paid by the Company at the rate of 35 cents per share on the common 
stock outstanding and on such additional common stock as may be issued 
under the provisions of the Merger Agreement between the Company and 
the City Gas Company of Norfolk, dated June 9, 1930, consisting in the aggre- 
gate of 2,788,425 shares, will amount to the sum of $975,948.75, which is sub- 
stantially less than the net earnings of the Company currently earned dur- 
ing the last twelve months available for common dividends; and that the 
payment of said dividend will in no wise impair the Company's necessary 
working capital or interfere with its ability to continue to furnish an ade- 
quate and efficient service to its customers, and is in no way inconsistent 
with the public interest; and the Commission being of opinion that the prayer 
of said application should be granted, and that the payment of said dividend 
should be approved and authorized; 

It is thekefore adjudged, ordered and decreed, That Virginia Electric and 
Power Company be, and it hereby is, authorized, empowered and permitted 
to pay a dividend at the rate of 35 cents per share on the Company's com- 



Decisions and Adjustments of Complaints 61 

mon stock represented by 2,788,425 shares without par value, (including 
common stock outstanding and such additional common stock as may be is- 
sued under the provisions of the Merger Agreement between the Company 
and the City Gas Company of Norfolk, dated June 9, 1930), payable Novem- 
ber 22, 1935, to stockholders of record at the close of business on November 
12, 1935, amounting to the sum of $975,948.75. 

Provided, however, that the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this or- 
der without charge therefor, upon being furnished with the necessary copies 
by the said Company; and 

Provided further. That this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This 7th day of November, 1935. 

By order of the Commission: Stanley Winborne, 

(S) R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 592. 

•IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO PAY A DIVIDEND AT THE RATE 
OF 20 CENTS PER SHARE ON THE COMMON STOCK ON SEPTEMBER 
15, 1936. 

Order 

This day came Virginia Electric and Power Company, hereinafter some- 
times called the Company, and presented its application verified under date 
of July 21, 1936, by J. G. Holtzclaw, president, under the provisions of Chap- 
ter 307 of the Acts of Assembly of 1933 (Sections 1112 (1-36), inclusive, 
Michie's Code of 1935, asking for authority to pay a dividend at the rate of 
twenty cents (20c) per share on the common stock of said Company out- 
standing and on such additional common stock as may be issued under the 
provisions of the Merger Agreement between said Company and the City 
Gas Company of Norfolk, dated June 9, 1930, and there were presented with 
said application and referred to and identified therein exhibits "A" and "B"; 
and upon motion of the said Company, by Hunton, Williams, Anderson, Gay 
and Moore, its counsel, through T. Justin Moore, of counsel; 

It is ordered. That said application and exhibits "A" and "B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for im- 
mediate consideration by the Commission, upon the application, exhibits and 
representations of counsel, without formal hearing; 

Thereupon, This matter came on this day to be heard and considered, upon 
the said application, exhibits and representations of counsel and upon the 
oral statements and representations of said J. G. Holtzclaw, President of said 
Company, who personally appeared with said counsel before this Commission, 
and was argued by counsel; 

Upon consideration whereof. The Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this State equip- 
ment or facilities for producing, generating, transmitting, delivering or fur- 
nishing electricity; and it appearing from said application, exhibits and 



62 ]^. C. Utilities Commission 

representations, and from the investigation and consideration by the Com- 
mission, that the Company's capital represented by its 2,788,445 shares with- 
out par value of common stock (including stock outstanding and such addi- 
tional common stock as may be issued in exchange for scrip or as may be 
issued under the provisions of the Merger Agreement between the Company 
and City Gas Company of Norfolk, dated June 9, 1930) as shown by its 
books, amounts to the sum of $15,137,260; that the current net earnings of 
the Company (after setting aside suitable appropriations for Retirement 
Reserve, as authorized by the Board of Directors, and the amount required 
for the payment of preferred dividends) available for common dividends and 
surplus for the twelve months ending June 30, 1936, amounted to the sum 
of $1,911,657.40; that the current net earnings for the nine months ending 
June 30, 1936, available for common dividends and surplus, after provision 
for Retirement Reserve and preferred dividends, amounted to the sum of 
$1,462,951.13; that the dividend proposed to be paid by the Company at the 
rate of 20 cents per share on the common stock outstanding and on such ad- 
ditional common stock as may be issued under the provisions of the Merger 
agreement between the Company and the City Gas Company of Norfolk, 
dated June 9, 1930, consisting in the aggregate of 2,788,425 shares, will 
amount to the sum of $557,685.00, which, together with the two 10 cents per 
share dividends paid during 1936, is substantially less than the net earnings 
of the Company available for common dividends currently earned during 
the nine months' period from October 1, 1935, to June 30, 1936, inclusive; 
and that the payment of said dividend will in no wise impair the Company's 
necessary working capital or interfere with its ability to continue to fur- 
nish an adequate and sufficient service to its customers, and is in no way 
inconsistent with the public interest; and the Commission being of opinion 
that the prayer of said application should be granted, and that the payment 
of said dividend should be approved and authorized; 

It is thekefore adjudged, ordered and decreed, That Virginia Electric and 
Power Company be, and it hereby is, authorized, empowered and permitted 
to pay a dividend at the rate of 20 cents per share on the Company's com- 
mon stock represented by 2,788,425 shares without par value, (including 
common stock outstanding and such additional common stock as may be is- 
sued under the provisions of the Merger Agreement between the Company 
and the City Gas Company of Norfolk, dated June 9, 1930), payable Septem- 
ber 15, 1936, to stockholders of record at the close of business on September 
4, 1936, amounting to the sum of $557,685.00. 

Provided, however. That the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this or- 
der without charge therefor, upon being furnished with the necessary copies 
by the said Company; and 

Provided further, That this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This 22nd day of July, 1936. Stanley Winrorne, 

By order of the Commission: Utilities Commissioner. 

By R. 0. Self, Chief Clerk. 

Docket No. 785. 



Decisions and Adjustments of Complaints 63 

IN THE MATTER OF VIRGINIA ELECTRIC AND POWER COMPANY ON 
APPLICATION FOR AUTHORITY TO PAY A DIVIDEND NOT EXCEED- 
ING 30 CENTS PER SHARE ON ITS COMMON STOCK IN DECEMBER, 
1936. 

Order 

This day came Virginia Electric and Power Company, hereinafter some- 
times called the Company, and presented its application signed under date 
of December 3, 1936, by J. G. Holtzclaw, President, under the provisions of 
Chapter 307 of the Acts of Assembly of 1933 (Sections 1112 (1-36), inclusive, 
Michie's Code of 1935, asking for authority to pay a dividend at a rate not 
to exceed thirty cents (30c) per share on the common stock of said Company 
outstanding and on such additional common stock as may be issued under 
the provisions of the Merger Agreement between said Company and the City 
Gas Company of Norfolk, dated June 9, 1930, and there were presented with 
said application and referred to and identified therein exhibits "A" and "B"; 
and upon motion of the said Company, by Hunton, Williams, Anderson, Gay 
and Moore, its counsel, through George D. Gibson, of counsel; 

It is ordered. That said application and exhibits "A" and "B" be, and they 
hereby are, filed, that the matter be and hereby is, docketed and set for im- 
mediate consideration by the Commission, upon the application, exhibits and 
representations of counsel, without formal hearings; 

Thereupon, This matter came on this day to be heard and considered, upon 
the said application, exhibits and representations of counsel and upon the 
oral statements and representations of said J. G. Holtzclaw, President of 
said Company, who personally appeared with said counsel before this Com- 
mission, and was argued by counsel; 

Upon consideration whereof. The Utilities Commission finds that the said 
Company is a corporation owning and lawfully operating in this State equip- 
ment of facilities for producing, generating, transmitting, delivering or fur- 
nishing electricity; and it appearing from said application, exhibits and rep- 
resentations, and from the investigation and consideration by the Commis- 
sion, that the Company's capital represented by its 2,788,445 shares without 
par value of common stock (including stock outstanding and such additional 
common stock as may be issued in exchange for scrip or as may be issued 
under the provisions of the Merger Agreement between the Company and City 
Gas Company of Norfolk, dated June 9, 1930) as shown by its books, amounts 
to the sum of $15,137,260; that the current net earnings of the Company 
(after setting aside suitable appropriations for Retirement Reserve, as au- 
thorized by the Board of Directors, and the amount required for the pay- 
ment of preferred dividends) available for common dividends and surplus 
for the twelve months ending September 30, 1936, amounted to the sum of 
$1,931,658.09; that the dividend proposed to be paid by the Company at a 
rate not exceeding 30 cents per share on the common stock outstanding and 
on such additional common stock as may be issued under the provisions of 
the Merger Agreement between the Company and the City Gas Company of 
Norfolk, dated June 9, 1930, consisting in the aggregate of 2,788,425 shares, 
will not exceed the sum of $836,531, which, together with the three (3) divi- 
dends totaling 40 cents per share paid during 1936, is approximately the 
same as the net earnings of the Company available for common dividends 



64 ' ^N". C. Utilities Commission 

currently earned during the twelve months ending September 30, 1936; and 
that the payment of said dividend will in no wise impair the Company's 
necessary working capital or interfere with its ability to continue to fur- 
nish an adequate and sufficient service to its customers, and is in no way 
inconsistent with the public interest; and the Commission being of opinion 
that the prayer of said application should be granted, and that the payment 
of said dividend should be approved and authorized: 

It is therefore adjudged, ordered and decreed, That Virginia Electric and 
Power Company be, and it hereby is, authorized, empowered and permitted 
to pay a dividend not to exceed 30 cents per share on the Company's com- 
mon stock represented by 2,788,425 shares without par value, (including 
common stock outstanding and such additional common stock as may be 
issued under the provisions of the Merger Agreement between the Company 
and the City Gas Company of Norfolk, dated June 9, 1930), payable on or 
about December 21, 1936, amounting to a sum not to exceed $836,531, pro- 
vided, however, that the payment to be made hereunder shall not exceed the 
actual current net earnings available for such purpose. 

Provided, however. That the Clerk of this Commission shall furnish one 
attested copy of the application herein, and three attested copies of this or- 
der without charge therefor, upon being furnished with the necessary copies 
by the said Company; and 

Provided further. That this proceeding be and the same hereby is stricken 
from the docket of the Commission, no further action in the premises being 
required. 

This 3rd day of December, 1936. Stanley Winborne, 

By order of the Commission: Utilities Commissioner. 

By (S) R. 0. Self, Chief Clerk. 

Docket No. 902. 

Atlantic Beach and Bridge Corporation. Complaint by Morehead City 
properties of charges for electricity. Company taken over by Tide Water 
Power Company. Rates adjusted. Closed. Docket No. 458. 

Carolina Power & Light Company. Petition of Citizens of Anderson 
Heights, Kenmoore and intervening sections for additional bus service. 
Dismissed. Docket No. 3 5. 

Carolina Power & Light Company. Application of City of Goldsboro 
for reduction in electric rates. Complaint withdrawn. Docket No. 206. 

Carolina Power & Light Company. Complaint of City Council of Ashe- 
ville of rates in Asheville area and asking as to feasibility of having 
Asheville included in TVA ZONE. Reduction in rates. Case closed. 
Docket No. 224. 

Carolina Power & Light Company. Application of A. W. Drinkard, 
Jr., for installation of electric service for home in Wake County. Matter 
taken up with company direct. Case closed. Docket No. 2 2 9. 

Carolina Power & Light Company. Petition by the citizens of Raleigh 
in eastern section asking for a division of bus line operated on the New 
Bern Avenue-Martin Street line. Adjusted. Docket No. 231. 



Decisions and Adjustments of Complaints 65 

Carolina Power & Light Company. Complaint of rates by John A. 
Monroe. Adjusted. Docket No. 2 5 4. 

Carolina Power & Light Company. Complaint of disconnect notice 
by M. S. Gray. Adjusted. Docket No. 318. 

Carolina Power & Light Company. Complaint of discrimination in 
rates by Southern Cotton Oil Company. Adjusted. Docket No. 3 69. 

Carolina Power & Light Company. Application by Z. Y. Brown for 
electrical service. Referred to Rural Electrification Committee. Docket 
No. 432. 

Carolina Power & Light Company. Application by Southern Cotton 
Oil Company for installation of motor to operate ginnery. Adjusted. 
Docket No. 467. 

Carolina Power & Light Company. Application by Town of Wake 
Forest for reduction in wholesale rate for electricity. New schedule of 
rates for redistribution and resale for municipalities filed. Closed. 
Docket No. 52 4. 

Carolina Power & Light Company to the Commission. Following rates 
filed and approved: 

Large Commercial Heating and Cooking; also 

Miscellaneous Commercial Heating and Cooking. (Docket No. 2 75). 

Residential Service — Immediate Rate. 

Residential Service — Inducement Rate. 

Commercial Lighting — Immediate Rate. 

Commercial Lighting — Inducement Rate. (Docket No, 612). 

Rider No. 5 to Residential Rate Classification. (Docket No. 832). 

Large Miscellaneous Power for Grist and Flour Mills. (Docket No. 

847). 
Ice Plant Service Rates. (Docket No. 677). 

Large Textile Mills. (Docket No. 2 79). ' 

Intermittent Power for Textile Mills. (Docket No. 392). 
Redistribution and Resale. (Docket No. 528). 
Power Service for Resale. (Docket No. 702). 
Revised application for Power services and Rules and Regulations 

governing the furnishing and use of power service. (Docket No. 

551). 
Wood-working plants rates. (Docket No. 779). 

Carolina Power & Light Company to the Commission. Application 
for authority to cancel Seasonal Cotton Oil Mill Service for customers 
under contracts of three years and over. Approved. Docket No. 449. 

Carolina Power & Light Company to the Commission. Application for 
authority to withdraw Commercial Baking Rates and Large Lighting and 
Power over 2 00 KW. Approved. Docket No. 707. 

Carolina Utilities, Inc. to the Commission. Electric rates, rules and 
regulations filed and approved. Docket No. 350. 

Danbury Light & Power Company to the Commission. Residential 
electric rates filed and approved. Docket No. 347. 

Dillsboro & Sylva Electric Light Company. Complaint of rates by the 
Town of Sylva. Rates filed and approved. Docket No. 549. 



66 N". C. Utilities Commission 

Duke Power Company to the Commission, Following rates filed and 
approved: 

Rates for Primary Power to consumers for resale and distribution 

of electric energy. (Docket No. 297). 
Residential Electric Service. 
Residential Electric Service. (Optional). 
Water Heating Service. 
Commercial Electric Lighting Service. 
Electric Sign and Window Lighting. 
Retail Electric Power Service. 
Wholesale Electric Power Service 
Power Service 

General Gas Service (Optional) (Docket No. 671). 
Residential Electric Service. 
Commercial Electric Lighting Service. 
Power Service. 

Retail Electric Power Service. 
Primary Power for Textile and Grain Mills contracting for 100 

Kilowatts and over. 
Primary power for resale and redistribution and to municipalities 

for resale. 
General gas service. (Optional.) (Docket No. 876.) 

Duke Power Company to the Commission. Rate for Rural Retail 
Service filed and denied. Docket No. 690. 

Duke Power Company. Complaint by R. K. Mitchell of increase in 
deposit by consumers as guarantee. Dismissed. Docket No. 406. 

Duke Power Company. Complaint by Wesley Long Hospital of service 
through two meters, and asking for information as to securing rates for 
service through one meter. Dismissed, Docket No, 419. 

Duke Power Company. Complaint by High Point Furniture Company 
of failure to secure service. Dismissed. Docket No. 456. 

Duke Power Company, Complaint by Frank H. Miller of meter read- 
ings and charges. Dismissed. Docket No, 572, 

Duke Power Company. Complaint by Mrs. Gladys C. Moore of deposit 
for light and gas bills. Dismissed, Docket No. 706. 

Duke Power Company. Application by C. T. Hudspeth for extension 
of power line. Dismissed. Docket No, 713. 

Duke Power Company. Application by A. V. Foglemen for light ser- 
vice. Adjusted. Docket No, 816. 

Duke Power Company, Application by Claude Moore for extension of 
service. Commission advised matter of proposed line would receive at- 
tention, and nothing further having been received from petitioner, case 
closed. Docket No. 498, 

Durham Public Service Company to the Commission, Rates for Com- 
mercial Lighting Service filed and approved. Docket No. 2 58, 

Durham Public Service Company to the Commission, Rates for small 
power and commercial heating service, large power service, large power 
and lighting service, and primary power service filed and approved. 
Docket No. 464. 



Decisions and Adjustments of Complaints 67 

East Tennessee Light and Power Company to the Commission. Rules 
and Regulations filed and approved. Docket No. 477. 

East Tennessee Light and Power Company, Complaint of rates by 
domestic consumers of Elk Park and Newland. Dismissed. Docket No. 
341. 

Farmers Light and Power Company. Complaint by Carolina and North- 
western Railway Company of construction of electric power line near 
Duan Siding, Maiden, same 'not meeting standard specifications. Ad- 
justed. Docket No. 6 60. 

Laurel Hill Electric Company. Complaint by C. S. Smith of rates. 
Dismissed. Docket No. 3 60. 

Nantahala Power and Light Company to the Commission. Rates for 
lighting, cooking and heating, commercial service lighting, and residential 
lighting filed and approved. Docket No. 273. 

Nantahala Power and Light Company. Complaint by W. M. Bradley 
of service of hotel and barber shop on one meter. Adjusted. Docket 
No. 437. 

Nantahala Power and Light Company to the Commission. Rates for 
cooking and heating filed and approved. Docket No. 700, 

Northwest Carolina Utilities, Inc. to the Commission. Combination 
residence rate No. 2-A filed and approved. Docket No. 29 6. 

Northwest Carolina Utilities, Inc., to the Commission. Revision of 
rates for Blowing Rock, Burnsville, Marshall, Roaring Gap, Sparta and 
West Jefferson. Approved. Docket No. 402. 

Northwest Carolina Utilities, Inc., to the Commission. Residential and 
commercial lighting service rates filed and approved. Docket No. 678. 

Northwest Carolina Utilities, Inc. to the Commission. Revised rates 
for Burnsville, Marshall, Sparta and West Jefferson, covering commercial 
lighting service, combination residence and commercial cooking, residen- 
tial lighting, refrigeration and commercial refrigeration, filed and ap- 
proved. Docket No. 776. 

Northwest Carolina Utilities, Inc. Application by Lloyd Lewis for 
electric service. Dismissed. Docket No. 52 6. 

Northwest Carolina Utilities, Inc. Complaint of service by Town of 
Marshall. Adjusted. Docket No. 6 3 6. 

Pamlico Ice and Light Company to the Commission. Rates for range, 
water heating, refrigerator and motor driven oil furnace filed and ap- 
proved. Docket No. 72 6. 

Pamlico Ice and Light Company to the Commission. Water heating 
rate filed and approved. Docket No. 8 54. 

Roanoke Utilities Company to the Commission. Residential rates, 
also schedules for hotels and clubs, and motors, filed and approved. 
Docket No. 334. 

Roanoke Utilities Company. Complaint of rates by Mrs. C. P. Wales. 
Adjusted. Docket No. 483. 

Roanoke Utilities Company to the Commission. Combination rate 
filed and approved. Docket No. 911. 



68 ]Sr. C. Utilities Commission 

Smoky Mountain Power Company. Complaint of rates for wood turn- 
ing plants by the Carolina Wood Turning Company. Rates filed under 
protest. Approved. Docket No. 65. 

South East Public Service Company to the Commiss'on. Application for 
authority to provide 2 4-hour service, change method of billing and adjust 
service charges at Yadkinville. Approved, Docket No. 59 6. 

South East Public Service Company to the Commission. Rates for 
Pilot Mountain filed and approved. Docket No. 642. 

Southern Public Utilities Company. Complaint of rates by Bernhardt 
Furniture Company. Adjusted. Docket No. 24 5. 

Southern Public Utilities Company. Complaint of excessive rates by 
Town of Tryon. Dismissed. Docket No. 283. 

Southern Public Utilities Company. Complaint by R. L. Smith of cost 
of building line to residence in Hendersonville. Dismissed. Docket 
No. 324. 

Southern Public Utilities Company. Application by Ellis W. Hender- 
son for construction of community project of power transmission line on 
Beaty Ford Road. Adjusted. Docket No. 335. 

Southern Public Utilities Company. Complaint by Anchor Mills Com- 
pany of rate for elevators and pumps in office building. Dismissed. 
Docket No. 340. 

Southern Public Utilities Company. Application by Carolina Cotton 
and Woolen Mills for installation of service conductors. Adjusted. 
Docket No. 376. 

Southern Public Utilities Company. Complaint by Greensboro Mer- 
chants Association of requirement of prospective customers in purchase 
of equipment before construction of rural lines. Adjusted. Docket No. 
466. 

Tide Water Power Company to the Commission. Following rates filed 
and approved: 

Residential Lighting — New Hanover. 

Commercial Lighting — New Hanover. 

Residential Lighting — Transmission System. 

Commercial Lighting — Transmission System. 

Flat Rate — sign and window lighting. 

Small Power. Medium Power A. Medium Power B. 

Ice-making and Refrigeration Plants. (Docket No. 295). 

Tide Water Power Company to the Commission. Following rates filed 
and approved: Large Power, Large Cotton Mill Power and Woodworking 
plants. Docket No. 309. 

Tide Water Power Company to the Commission. Following rates filed 
and approved: 

Residential Lighting — New Hanover. 

Commercial Lighting — New Hanover. 

Residential Lighting — Transmission System. 

Commercial Lighting — Transmission System. Docket No. 740. 



Decisions and Adjustments of Complaints 69 

Tide Water Power -Company to the Commission. Following rates filed 
and approved: 

Residential and Commercial Lighting Rate (Adjacent to New Bern) 

(Competitive). 
Optional Residential Combination Electric Service. (Adjacent to 

New Bern.) (Competitive.) Docket No. 80 6. 

Tide Water Power Company. Complaint by citizens of Chadbourn of 
voltage conditions. Adjusted. Docket No. 4 4 3. 

Tide Water Power Company to the Commission. Revised electric rates 
for competitive territory adjacent to Kinston filed and approved. Docket 
No. 588. 

Tide Water Power Company to the Commission. Conditions relating 
to commuters' street railway ticket books. Approved. Docket No. 759. 

Tide Water Power Company to the Commission. Street car tickets. 
Approved. Docket No. 809. 

Tide Water Power Company to the Commission. Gas rates for Fayette- 
ville, Goldsboro, Kinston, New Bern, Washington and Wilmington filed 
and approved. Docket No. 399. 

Tide Water Power Company. Complaint of service at White Lake. Ad- 
justed. Docket No. 354. 

Tide Water Power Company. Complaint of service by Glanton Veneer 
Company. Adjusted. Docket No. 4 61. 

Tide Water Power Company. Complaint of electric light rates in 
Jacksonville. Dismissed. Docket No. 475. 

Tide Water Power Company. Complaint of service by citizens of 
Richlands. Adjusted. Docket No. 571. 

Tide Water Power Company to the Commission. Rural electrification 
rates approved. Docket No. 712. 

Tide Water Power Company. Complaint of waterworks system at 
Morehead City. Dismissed. Docket No. 801. 

Tide Water Power Company. Complaint of inefficient service at Ken- 
ansville. Adjusted. Docket No. 784. 

Virginia Electric and Power Company to the Commission. Rates filed 
and approved as follows: 

Revised schedule of residential service rate. (Docket No. 284). 
Residential Service Rate No. 2 and general service rate. (Docket 

No. 293). 
General service rate. 
Power service rate. 

Ice manufacturing and cold storage rate. (Docket No. 509). 
Industrial service rate. 
Rider for receiver or trustee. 
Residential service rate No. 1 and general service rate. (Docket 

No. 705). 
Municipal power rate. (Docket No. 753). 
Rider to prospective and existing customers requesting service in 

Dare County. (Docket No. 758). 
Electric range and water heater installations. (Docket No. 8 34). 
Revision of Form C Rural Extension plan designated as agreement 

for line extension — Form B. Rural Extension plan. (Docket 

No. 656). 



70 ]^. C. Utilities Commission 

Virginia Electric and Power Company to the Commission. Application 
for authority to withdraw the following rates. Approved: 

Home electric service rate — 13-A. (Docket No. 3 39). 
Display lighting rate. (Docket No. 438). 

Virginia Electric and Power Company. Petition of Town of Kelford 
asking for street lighting from dusk to midnight. Adjusted. Docket 
No. 330. 

Virginia Electric and Power Company. Complaint of service at Scot- 
land Neck. Adjusted. Docket No. 819. 

Virginia Electric & Power Company and Carolina Power & Light Com- 
pany. Petition by West Roanoke Union of Churches for reduction in 
rates for church lighting. Dismissed. Docket No. 468. 



Gas Companies 

Asheville Gas Company to the Commission. Following rates filed and 
approved: 

Commercial and Industrial (Docket No. 247) 

Domestic Refrigeration Rate (Optional) (Docket No. 382) 

Optional Schedule D-2-A. (Docket No. 452) 

Carolina Central Gas Company to the Commission. Reduction of rates 
in Hendersonville. Approved. Docket 2 53. 

Carolina Central Gas Company to the Commission. Reduction of rates 
for Hendersonville and adjacent territory. Approved. Docket No. 771. 

Carolina Central Gas Company. Complaint of rates by R. P. Freeze. 
Adjusted. Docket No. 749. 

Concord and Kannapolis Gas Company to the Commission. Domestic 
refrigeration rate filed and approved. Docket No. 663. 

Durham Gas Company to the Commission. Following rates filed and 
approved: 

Option Schedule D-2-A. (Docket No. 453). 

House heating rate. (Docket No. 533). 

Domestic refrigeration rate (Optional) (Docket No. 6 64). 

Elizabeth and Suburban Gas Company to the Commission, Rates for 
Elizabeth City filed and approved. Docket No. 682. 

Gastonia and Suburban Gas Company to the Commission, Domestic 
refrigeration rate (optional) for Gastonia filed and approved. Docket 
No. 665. 

National Utilities Company of North Carolina to the Commission. Fol- 
lowing rates filed and approved: 

Domestic refrigeration rate (optional) for Statesville, (Docket No. 

666). 
Domestic Water Heating Rate (Optional) (Docket No. 725). 



Decisions and Adjustments of Complaints 71 

North Carolina Gas Company to the Commission. Rates for Elizabeth 
City, Henderson, Lexington, Oxford and Reidsville filed and approved. 
Docket No. 398. 

Piedmont Gas Company to the Commission. Rates for Hickory, Gran- 
ite Falls, Lenoir, Newton and Conover. Filed and approved. Docket 
No. 342. 

Piedmont Gas Company to the Commission. Optional flat refrigeration 
rates for Conover, Granite Falls, Hickory, Lenoir and Newton filed and 
approved. Docket No. 492. 

Raleigh Gas Company to the Commission. Following rates filed and 
approved: 

Domestic Refrigeration Rate (optional) (Docket No. 3 83). 
Optional Schedule D-2-A. (Docket No. 343). 

EXPRESS COMPANIES 

APPLICATION OF RAILWAY EXPRESS AGENCY, INC., TO CLOSE 
AGENCY AT BOSTIC, N. C. 

Order 

Hearing on above application was held at Raleigh on October 24, 1934. J. 
D. Warren, Route Agent, Monroe, N. C, represented the applicant company 
while the application was opposed by Mr. P. W. Garland and George W. 
Jones, both of Bostic. 

Delay in this order has been due to the Commission making further in- 
vestigation in connection with this and other similar applications. Route 
Agent Warren testified that from October, 1933, to September, 1934, inclusive, 
the revenue at this agency averaged $32.68 monthly with an expense averag- 
ing $10.00 monthly. 

Mr. Garland presented a petition signed by eighty citizens of Bostic pro- 
testing against closing the express agency. Mr. Jones testified "business is 
picking up. I have forty acres of nursery stock there. I ship a lot of it by 
express. We used to send a load every day. I think it would be the wrong 
thing to discontinue the agency. I used to pay in express charges four to 
six hundred dollars a year." 

The Commission is of the opinion and so finds that both facts and pros- 
pects for the future are too favorable to abolish the agency at Bostic at this 
time and for that reason it is 

Ordered, That the application be and the same is hereby denied and pro- 
ceedings dismissed. 

This 27th day of May, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk Commissioner. 

Docket No. 7559 (Corp. Com.) 



72 ^N". C. Utilities Commission 

APPLICATION OF RAILWAY EXPRESS AGENCY, INC.. TO CLOSE 
AGENCY AT CLARENDON, N. C. 

Order 

Hearing in this matter was held at Raleigh, October 24, 1934. Order there- 
on has been withheld pending further investigation. The Atlantic Coast 
Line Railroad Company at one time applied for permission to close its freight 
agency at Clarendon but withdrew the application. The Commission was in- 
clined to approve the application in the present cas'? when we were advised 
the agent would not accept a less monthly salary than $10.00, but it would 
now appear that the gross revenue at this station was $167.01, or $13.92 per 
month, and the monthly pay of the agent is a matter between the company 
and the Union and regardless of this situation the patrons of the Clarendon 
office must be considered. 

The Commission is of the opinion and so finds that the Clarendon agency 
is not a dead expense when earnings are considered. 

It is, therefore, ordered, That the application to close the Clarendon 
Agency is hereby denied and the proceedings dismissed. 
This 11th day of June, 1935. 
By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 192. 

APPLICATION OF RAILWAY EXPRESS AGENCY, INC., TO DISCON- 
TINUE AGENCY AT HALLISON, N. C. 

Order 

Hearing on the above matter was held at the Commission's hearing room, 
Raleigh, on October 24, 1934. Route Agent White for the Express company 
testified that from October, 1933, through September, 1934, a period of one 
year, the average monthly gross revenue at Hallison was $25.34. The aver- 
age number of shipments per month was 15 and the average monthly ex- 
pense was $10.00 which represents the agent's salary. 

Protestants are Highfalls Manufacturing Co., T. W. Parks and Sons, 
Quaker Children's Home, Carolina Bible Training School, Highfalls Store 
Co., and F. H. and R. H. Upchurch, who join in telegraph protest and state 
that the express company is not losing any money and "we believe the near 
future will bring business whereby express people will benefit." 

The Commission is of the opinion and so finds that the closing of this 
agency should not be authorized at this time — that the revenue is taking 
care of the agency without any dead loss, and 

It is, therefore, ordered. That the application to close the agency at Hal- 
lison be and the same is hereby denied and the proceedings dismissed. 

This 27th day of May, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk GommAssioner. 

Docket No. 7551 (Corp. Com.) 



Decisions and Adjustments of Complaints 73 

APPLICATION OF RAILWAY EXPRESS AGENCY, INC., TO DISCON- 
TINUE ITS AGENCY AT JACKSON SPRINGS, N. C. 

Order 

Hearing on this matter was held at the Commission's hearing room, Ra- 
leigh, on October 24, 1934, and the order has been delayed pending further 
investigation of this and other applications heard at the same time. 

At the hearing Mr. J. G. White, Route Agent, Norlina, N. C, testified for 
the applicant company and stated that business at Jackson Springs for the 
period of October, 1933, to September, 1934, inclusive, averaged 52 shipments 
per month and monthly gross revenue averaged $42.87 — that the monthly 
cost of $10.00 represents the agent's salary. 

The Commission has received several petitions protesting discontinuance 
of the agency, among others are merchants at Jackson Springs, who call at- 
tention to the fact that a CCC Camp is located adjacent to the place, which 
has 200 men who use the express service almost daily. 

The Commission is of the opinion and so finds that both the present rev- 
enue and prospects for the future appear too good to warrant a finding that 
the express agency should be closed at this time. 

It is, therefore, ordered, That the application be and the same is hereby 
denied, and the proceedings dismissed. 
This 27th day of May, 1935. 
By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 7547 (Corp. Com.) 

APPLICATION OF RAILWAY EXPRESS AGENCY, INC., TO DISCON- 
TINUE AGENCY AT MIDDLESEX, N. C. 

Order 

Hearing in the above matter was held at the Commission's office in Ra- 
leigh, N. C, on October 24, 1934, and decision has been delayed pending fur- 
ther consideration of the matter. 

The evidence shows that the collected revenue for the last five months of 
1932 and eight months of 1933 averaged $15.80 per month, the gross revenue 
averaged $28.68 per month. The agent's salary is $10.00 per month. The 
record shows that the railroad agent's salary is $62.00 per month, which 
would indicate the station is of considerable importance. 

The Commission is of the opinion and so finds that the agency shows up 
as too important to close and deprive the patrons of this public service. 

It is, therefore, ordered, That the application be and the same is hereby 
denied, and the proceeding dismissed. 
This 22d day of May, 1935. 
By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk Commissioner. 

Docket No. 7575 (Corporation Commission). 



74 ]^. C. Utilities Commission 

APPLICATION OF RAILWAY EXPRESS AGENCY, INC., TO DISCON- 
TINUE ITS AGENCY AT NEW HILL, N. C. 

Order 

Hearing in the above matter was held at Raleigh on October 24, 1934. Mr. 
J. T. White, Route Agent, represented applicant. There was no protestant 
present, but the Commission had received a petition signed by Mr. John H. 
Bright, lumberman, and several merchants in the vicinity of New Hill. 

While admitting that the express business was off on account of the de- 
pression, prediction was made that business would Improve and calling at- 
tention to the fact that both express and parcels post were being handled by 
the same railroad truck at stations between Hamlet and Norlina, both in- 
clusive, and suggesting that no hardship would be worked by continuing the 
express business, which it was petitioned be done. 

Mr. White testified at the hearing that the average gross revenue of the 
Railway Express Agency at New Hill, beginning October, 1933, to and in- 
cluding September, 1934, was $11.99 per month; that the cost was $10.00 per 
month, which is the amount of the agent's salary, but he stated "it looks 
like the agency is operated at an out-of-pocket loss." 

The Commission is of the opinion and so finds that at present there does 
not appear to be a dead loss at this agency and inasmuch as the railroad 
continues its own agency the Commission is not inclined to close the express 
agency without there is shown to be a dead loss. 

It is, therefore, ordered. That the application be and the same is hereby 
denied for the present and may be renewed when and if the revenue gets to 
be less than shown at the hearing in this case. 

This 28th day of May, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk Commissioner. 

Docket No. 7560 (Corporation Commission.) 

Benton Printing Company vs. Railway Express Agency. Claims for dam- 
ages on shipment of posters. Claim paid. Docket No. 400. 

Fuquay Motor Company, Inc., vs. Railway Express Agency. Petition for 
reestablishment of agency at Fuquay Springs. Denied. Docket No. 343. 

Citizens of Pine Hall vs. Railway Express Agency. Petition to reopen 
agency. Dismissed. Docket No. 729. 

Railway Express Agency to the Commission. Application for approval of 
closing agency at Hampstead. Granted. Docket No. 289. 

Railway Express Agency to the Commission. Application for authority to 
close agency at Marston. Denied. Docket No. 747. 

Railway Express Agency to the Commission. Application for authority to 
close agency at Tuckerdale. Dismissed. Docket No. 391. 

Railway Express Agency to the Commission. Rates on rayon fibre and 
rayon yarn. Approved. Docket No. 507. 

Railway Express Agency to the Commission. Application for authority 
to revise rates on intra-state traffic. Approved, Docket No. 720. 

Railway Express Agency to the Commission. Discontinuance of over-the- 
road truck service from Petersburg, Va., to Norlina. Approved. Docket No. 
291. 



Decisions and Adjustments of Complaints 75 

Railway Express Agency to the Commission. Elimination of truck service 
between Norlina and Raleigh. Approved. Docket No. 630. 

Southeastern Express Company to the Commission. Application for au- 
thority to close agency at Ela. Granted. Docket No. 566. 

Southeastern Express Company to the Commission. Application for au- 
thority to close agency at Gold Hill. Granted. Docket No. 203. 

Southeastern Express Company to the Commission. Application for au- 
thority to discontinue office at Madison. Granted. Docket No. 867. 

Southeastern Express Company to the Commission. Application for au- 
thority to close agency at Nebo. Dismissed. Docket No. 199. 

Southeastern Express Company to the Commission. Application for au- 
thority to close agency at Pelham. Granted. Docket No. 265. 

Southeastern Express Agency to the Commission. Application for author- 
ity to close agency at Willetts. Dismissed. Docket No. 393. 

Southeastern Express Company to the Commission. Application for au- 
thority to close agency at Wilson Mills. Granted. Docket No. 593. 

Southeastern Express Company to the Commission. Application for au- 
thority to make refund on shipment of rayon from Enka to Randleman. 
Approved. Docket No. 264. 

Southeastern Express Company to the Commission. Application for au- 
thority to waive undercharge on shipments of ice cream mix from Biltmore 
to N. C. points; also from Lexington to N. C. points; and on shipment of 
milk from Winston-Salem to Asheville. Approved. Docket No. 633. 

Southeastern Express Company to the Commission. Application for au- 
thority to discontinue loading and unloading express traffic at Graham. 
Granted. Docket No. 674. 

Southeastern Express Company to the Commission. Application for au- 
thority to revise rates between stations in North Carolina. Approved. 
Docket No. 796. 

Southeastern Express Company to the Commission. Application for au- 
thority to discontinue use of trains between Chapel Hill and University and 
substitute in lieu thereof truck service between Durham and Chapel Hill. 
Granted. Docket No. 565. 

Southeastern Express Company to the Commission. Application for au- 
thority to inaugurate truck line between Gastonia and Lincolnton over N. 
C. No. 316 with closed doors at intermediate points; also from Gastonia to 
Shelby over N. C. No. 20, with closed doors at intermediate points. Granted. 
Then later application for authority to consolidate these routes. Granted. 
Docket No. 586. 

Southeastern Express Company to the Commission. Application for au- 
thority for motor truck service between Asheville and Enka. Granted. Docket 
No. 605. 

Southeastern Express Company to the Commission. Application for fran- 
chise to operate truck service between High Point and Asheboro for handling 
express traffic. Granted. Docket No. 606. 

Southeastern Express Company to the Commission. Application for au- 
thority to use truck service for moving large quantities of bread in cases of 
emergency (when train connection is broken). Denied. Docket No. 797. 

Southeastern Express Company to the Commission. Application for au- 
thority to operate truck between Hickory and Lenoir. Granted. Docket No. 
599. 



76 ]N". C. Utilities Commissions' 

Motor Vehicle Lines 

FRANCHISE GRANTED UNDER AUTHORITY OP CHAPTER 136, 
PUBLIC LAWS OF NORTH CAROLINA, 1927, OUTSTANDING ON 
OCTOBER 1, 1934 

Name of Company, Descriptiox of Route. (Numbers shown are State 
Highway Numbers) 

Atlantic Greyhound Lines. J. L. Gilmer, President, Winston-Salem, N. C. 

Passenger: Winston-Salem to Charlotte, 6 5, 9 0, 26; Winston-Salem 
to North Carolina-Virginia State Line, destination Martinsville, Va., 
77; Winston-Salem to the North Carolina-Virginia State Line, destina- 
tion Hillsville, Va., 6 6 via Mount Airy; Winston-Salem to High Point, 
77; Winston-Salem to Greensboro via Kernersville, 60; Winston-Salem 
to the North Carolina-Tennessee State Line via North Wilkesboro and 
West Jefferson, 60, 16; also via 60 via Boone and Zionville; Jefferson 
to Boone, 691; Winston-Salem to Lexington, 66; Salisbury to Mocks- 
ville, 80; Charlotte to North Carolina-South Carolina State Line via 
Pineville, 2 6, 261; Statesville to Mount Airy, 2 6, 2 68, 80; Greensboro 
to the North Carolina-Virginia State Line, 70; Kernersville to inter- 
section of 771 and 77 over 771; Asheville to Oteen, 10; Asheville to 
North Carolina-Tennessee State Line, 20, destination Newport, Tenn.; 
Hendersonville to the North Carolina-South Carolina State Line at 
Chestnut Springs on route to Greenville, S. C, 69; Brevard to Hen- 
dersonville, 28; Brevard to North Carolina State Line, 2 76; Winston- 
Salem over Route 48 via Walkerton Junction, Stokesdale, Wentworth 
and Route 54 to Reidsville, limited as to passengers riding between 
Corrum's Store and Reidsville. 

Barbour's Motor Express, R. H. Barbour, Fuquay Springs, N. C. 

Freight: Raleigh and Fayetteville, 21; and between Cardenas and 
Fayetteville, 55, 60 and 22, via Angier, Coats, Erwin, Dunn and Godwin. 

Bass Bonded Trucks, Incorporated, A. B. Bass, President and Manager, Tar- 
boro, N. C. 

Freight: Farmville to Roanoke Rapids, 12, 125, 40, 48, 481, via 
Tarboro, Scotland Neck, Halifax, Weldon and Rosemary. 

Black's Motor Exprk.ss, D. J. Black, Owner, Wilmington, N. C. 

Freight: Wilmington to Sanford via Delway, Clinton, Dunn, Lilling- 
ton and Jonesboro, 60, 53. 

Blizard Motor Express, Mount Airy, N. C. 

Freight: Mount Airy to Greensboro via Winston-Salem and Kern- 
ersville, 66, 60. 

Boone Transfer Company, Spencer Miller, Boone, N. C. 

Freight: Boone, N. C, to N. C. -Tennessee State Line, destination 
Bristol, Tennessee-Virginia, via Highway No. 60 via Vilas and Zionville; 
Zionville to Lansing, via West Jefferson and Warrensville, 16 and 161; 
Vilas to Elk Park via Banners Elk, Highway 194; Blowing Rock to 
the N. C. -Tennessee State Line via Linville, Newland, Cranberry and 
Elk Park, Highways 2 8, 181 and 69; Boone to North Wilkesboro, High- 



Decisions and Adjustments of Complaints 77 

way No. 60; West Jefferson to Winston-Salem via Sparta and Doughton 
with the provision that intrastate shipments are not received or de- 
livered between Winston-Salem and Doughton, Winston-Salem and 
North Wilkesboro or from North Wilkesboro to Winston-Salem. 

C. & S. Motor Express, E. F, Caudill, Secretary and Treasurer, North Wilkes- 
boro, N. C. 

Freight: North Wilkesboro to Winston-Salem via Yanceyville and 
Brooks Cross Roads, 60. 

Capital Coast Express Company, John W. Starling, Manager, Clayton, N. C. 
Freight: Raleigh to Kinston, 10; Kinston to Goldsboro via Snow 
Hill, 12, 102. 

Carolina Coach Company, H. H. Hearn, General Manager, Raleigh, N. C. 

Passenger: Raleigh to Charlotte via Greensboro and Salisbury, 10, 
15; Raleigh to Fayetteville via Lillington and Dunn, 21, 60, 22; Raleigh 
to North Carolina-Virginia State Line via Rocky Mount, Tarboro, Rich 
Square, Aulander, Winton, Gatesville, Sunbury and Corapeake, 9 0, 12, 
305, 30; Greenville to Tarboro via Bethel, 11, 90; Zebulon to Wilson, 
91; Durham to Chapel Hill, 75; Bethel to Williamston, 90; Raleigh to 
Virginia-North Carolina State Line via Creedmore and Oxford over 
Highways Nos. 31 and 75; Greensboro and Raleigh via Chapel Hill 
over Route 10 from Greensboro to Burlington; 10-A from Burlington 
to Graham, then over Route 54 from Graham to Nelson and Route 10 
from Nelson to Raleigh. 

Carolina-Norfolk Truck Line, J. M. Spence, President, 37 Nebraska Street, 
Norfolk, Va. 

Freight: Wilson to North Carolina- Virginia State Line, destination 
Norfolk, Va., via Tarboro, Rich Square, Aulander, Winton, Gatesville, 
Sunbury and Corapeake, 42, 12, 305, 30. 

Carolina Scenic Coach Line, McD. Turner, 231 East Main Street, Spartan- 
burg, S. C. 

Passenger: Hendersonville to Tryon, 191; Elk Park to North Caro- 
lina-South Carolina State Line near Cliffside, 194, 19, 20, 207, via 
Newland, Woodlawn, Marion and Rutherfordton; Hendersonville to 
Asheville, 191 (without privilege of picking up passengers in Hender- 
sonville for Asheville, except .for that part of Asheville west of the 
French Broad River, known as West Asheville, or on the East side of 
the French Broad River for Hendersonville). 

Carrington & Jones Transportation Company, Washington, N. C. 

Freight: Washington, N. C. and Swan Quarter, N. C, U. S. High- 
way 2 64 or N. C. Highway 91. 

Ciiarlotte-Raleigii Bus Line, Incorporated, W. E. Smith, Secretary, Albe- 
marle. N. C. 

Passenger: Charlotte to Raleigh via Albemarle and Sanford, 2 7, 74, 
75, 50. 



78 N. C. Utilities Commission 

City Coach Company, Charlotte, N. C. 

Passenger: Cramerton nortli across Route 20 to McAdenville and 
Lowell, Including Spencer Mountain Highway to Priscilla Mill and back 
to Gastonia over Highway 29. 

J. L.. CoPELAND, Route 1, Durham, N. C. 

Freight: Chapel Hill to Durham, Route 75. 

Cox & Eggleston (John L. Cox and B. H. Eggleston), Spray, N. C. 

Passenger: Leaksville-Spray, N. C, to North Carolina-Virginia State 
Line on route to Fieldale, Va., 54. 

Danville & Durham Motor. Express Line, J. A, Manooch, 726 Temple Ave- 
nue, Danville, Va. 

Freight: Durham to the North Carolina-Virginia State Line, desti- 
nation, Danville, Va., 55, 48, 14, via Roxboro and Leasburg; Spray to 
the North Carolina-Virginia State Line, 709, 65, 70, via Reidsville; 
Spray to the North Carolina-Virginia State Line via the highway fol- 
lowing the Dan River, (Authority to pick up in Spray for Reidsville 
or in Reidsville for Spray is not granted.) 

Davis, J. E.. Rosemary N. C. 

Freight: Rosemary, N. C, to North Carolina-Virginia State Line, 
via Weldon, Murfreesboro and Como, 4 8, 12. (Operation limited to 
interstate.) 

Dayton Brothers Bus Line, Incorporated, Murphy, N. C. 

Passenger: Franklin and Murphy via Haysville, 28; Murphy to N. 
C.-Tennessee State Line down to the Hiawassee River via Unaka. 

East Coast Stages, Incorporated, H. Pierce Brawner, Vice-President, Lenoir 
and Dawson Streets, Raleigh, N. C. 

Passenger: North Carolina-Virginia State Line to North Carolina- 
South Carolina State Line via Norlina, Raleigh, Goldsboro, Wilmington 
and Bolivia, 50, 10, 40, 20, 30; Tin City to Wallace, 41; Wilson to 
Greenville, 91; Fayetteville to North Carolina-South Carolina State 
Line via Raeford and Laurinburg, 2 4 (without privilege of local opera- 
tion over that part of the route between Fayetteville and Raeford). 
Raleigh to Fayetteville via Lillington, 21 (operation over that part 
of the route between Raleigh and Lillington being restricted to the 
transportation of passengers whose origin or destination is between 
Lillington and Fayetteville, not including either, and points included 
in Franchise Certificate No. 3 75 south of Fayetteville). Durham to 
Henderson via Oxford, 75 and 48, 

Engelhard-Washington Bus Company, S. M. Gibbs, Owner, Swan Quarter, 
N, C, 

Passenger: Washington and Engelhard; Washington over 91 via 
Belhaven, Scranton, Swan Quarter to Engelhard. 

E. T, and W. N. C. Motor Transportation Company, J. E. Vance, Vice-Presi- 
dent, Johnson City, Tenn, 

Passenger: Asheville to North Carolina-Tennessee State Line, 20, 



I 



Decisions and Adjustments of Complaints 79 

212; Asheville to North Carolina-Tennessee State Line, via Spruce 
Pine, Elk Park, etc., 20, 69; Cane River Post Office to State Line, 692; 
N. C. Highway No. 194 from Elk Park to Vilas and N. C. Highway No. 
60, with closed doors, from Vilas to Boone. 

Freight: Swiss to North Carolina-Tennessee State Line, via Spruce 
Pine and Elk Park, 69; Spruce Pine to North Carolina-Tennessee State 
Line, via Bakersville, 19; Operation over 692, 197, 104 from their 
junction with 69 to their junction with 19; Elk Park to Banner Elk, 
194; Cranberry to Cranberry via Newland, Linville, Pineola and Cross- 
nore, 194, 181, 691, 194. 

Fort Bragg Coach Company, C. F. Harris, Fayetteville, N. C. 

Passenger: Fayetteville to Fort Bragg, 53. (Leased to the Greens- 
boro-Fayetteville Bus Line.) 

Fredrickson Motor Express Corporation, Chas. H. Fredrickson, President, 
Charlotte, N. C. 

Freight: Charlotte to Greensboro, 15, 10; Lexington to Winston- 
Salem, 66; Charlotte to Statesville, 26; Charlotte to Lenoir, 27, 16, 10, 
17; Charlotte to Asheville, via Shelby and Hendersonville, 20, 28, 69; 
Statesville to Winston-Salem, 90, 48; Salisbury to Asheville, via States- 
ville, 10; Shelby to Lincolnton, 206; Cherryville to Bessemer City, 274. 

Georgia Motor Express, Incorporated, 10 Krog Street, Atlanta, Ga. 

Freight: Asheville to the North Carolina-Georgia State Line, desti- 
nation Atlanta, Georgia, via Waynesville, Sylva and Franklin, 10, 285 
(without privilege of local operation on that part of route between 
Asheville and Waynesville.) 

Geringer, Hurley, New Bern, N. C. 

Freight: New Bern to Beaufort, 10; Beaufort to intersection of 
101 with 10, near Havelock, 101; Beaufort to Atlantic, County High- 
way. 

Goldston Motor Express, J. M. and E. H. Goldston, Owners, Spray, N. C. 

Freight: Draper and Greensboro via Leaksville-Spray and Reids- 
ville, 770, 48 and 70 and between Leaksville and Winston-Salem via 
Stoneville, 770 and 77. 

Greensboro-Fayetteville Bus Line, Incorporated, Asheboro, N. C. 

Passenger: Greensboro to Fayetteville, via Asheboro, Pinehurst, 
Southern Pines, Aberdeen and Raeford, 70, 75, 702, 50, 70, 24; Durham 
to Rockingham, via Sanford and Hamlet, 75, 50, 204, 20; Candor to 
Rockingham via Norman and Ellerbe, 170, 75; Greensboro to Fayette- 
ville, via Sanford, 60, 53; High Point to Asheboro, via Randleman, 77, 
70; Asheboro to Siler City, via Ramseur, 9 0. 

Habit Brothers, John and Joe Habit, Edenton, N. C. 

Freight: Washington to North Carolina-Virginia State Line via Wil- 
liamston, Windsor, Edenton, Elizabeth City and South Mills, 30, 342, 
34, 341; Williamston to Washington, 30; Washington to New Bern, 
3 and over 10 for interstate haul between New Bern and Beaufort, 



80 JN". C. Utilities Commission 

via Morehead City; Elizabeth City to North Carolina-Virginia State 
Line, via Sligo and Moyock, 34. 

Hampton Roads Tkansportation Company. J. L. Wright, 912 Water Street, 
Norfolk, Va. 

Freight: Elizabeth to North Carolina-Virginia State Line, via Mo- 
yock, 34; Elizabeth City to North Carolina-Virginia State Line, via 
South Mills, 34, 341. 

Helms Motor Express, Mrs. Mabel D. Helms, Owner, Albemarle, N. C. 

Freight: Raleigh to Charlotte, via Sanford, Carthage, Biscoe, etc., 
10, 50, 75, 109, 515, 74, 27; Albemarle to Salisbury, 80; Durham to 
Aberdeen, via Sanford, 75, 50; Aberdeen to Pinehurst, 70; Pinehurst 
to Southern Pines, 702. 

H. Hunt & Company, 120 Water Street, Wilmington, N. C. 

Freight: Wilmington to Fayetteville, via Elizabethtown, 2 0, 21; 
Elizabethtown to Lumberton, via Clarkton and Bladenboro, 2 3, 211; 
Fayetteville to Lumberton, 22; Wilmington to Goldsboro, 40. 

Independent Bus Company, R. J. Rudolph and T. W. Wingate, Independence, 
Virginia. 

Passenger: Elkin to North Carolina-Virginia State Line, via Sparta, 
2 6, destination Wytheville, Va. \ 

Inter-Carolina Motor Bus Company, 32 South Lexington Avenue, Aslieville. 
North Carolina. 

Passenger: Charlotte, N. C, and North Carolina-South Carolina 
State Line over N. C. Highway 15. (This line leased to Smoky Moun- 
tain Stages, Incorporated, Asheville, N. C.) 

W. J. Jordan, Transfer, Box 436, Kinston, N. C. 

Freight: Kinston and Wilmington via Route 121 to Richlands, via 
Jacksonville, 24; via Route 30 to Wilmington. 

Leaksville-Danville Bus Line, J. C. Gilley, Spray, N. C. 

Passenger: Leaksville to North Carolina-Virginia State Line, des- 
tination Danville, Va., Leaksville-Spray to Reidsville, 54, 65; Reidsville 
to Burlington, 64. 

LiNCOLNTON Bus COMPANY, J. R. Lewis, Owner, 32 Lexington Avenue, Ashe- 
ville, N. C. 

Passenger: Gastonia to Lincolnton over State Highway 16. 

McLeod's Transfer, Ned McLeod, Owner, Broadway, N. C. 

Freight: Sanford to Wilmington, 53, 60 and 40 (without privilege 
of local operation south of Clinton on 6 and 40). 

M. & M. Motor Express, M. B. and C. C. McNeill, North Wilkesboro, N. C. 
Freight: North Wilkesboro to Charlotte via Taylorsville, Conover, New- 
ton and Lincolnton over Routes Nos. 16, 321 and 27 provided that the said 
company shall not deliver or accept any freight or express at any point 
which is now served by Fredrickson Motor Express Corporation except 
shipments from North Wilkesboro to Newton and from Newton to North 
Wilkesboro. 



Decisions and Adjustments of Complaints 81 

Miller Motor Express, W. W. Miller, Jr., 314 North Caldwell Street, Char- 
lotte, N. C. 

Freight: Charlotte to the North Carolina-South Carolina State Line, 26 
and 261, destination Fort Mill, S. C, Rock Hill, S. C, and Chester, S. C. 
Charlotte to Wilmington via Monroe, Wadesboro, Rockingham, Hamlet, 
Laurinburg, Lumberton and Bolton, 20; Laurinburg to Fayetteville via 
Raeford, 24; Fayetteville to Lumberton, 22; Lumberton to Bolton, 211. 

Morgan, G. B., Corapeake, N. C. 

Freight: Hertford to North Carolina-Virginia State Line near Cora- 
peake. via Winfall, Gliden and Sunbury, 342, 321, 32, 30. 

Motor Express Company, H. S. Reid, President, Roanoke, Va. 

Freight: Winston-Salem to North Carolina-Virginia State Line, 77, des- 
tination, Roanoke, Va. 

Motor Transit Company, R. S. Koonce and M. B. Koonce, 324 West Lane 
Street, Raleigh, N. C. 

Freight: Raleigh to Greensboro, 10; Greensboro to Fayetteville, via San- 
ford, 60, 53; Greensboro to Fayetteville, via Asheboro, Biscoe, Candor, 
Eagle Springs, Pinehurst, Southern Pines, Aberdeen and Raeford, 70, 75, 
702, 50, 70, 24; Asheboro to Ramseur, 90; Henderson to North Carolina- 
Virginia State Line, destination Richmond, Va., U. S. 1. (This route to 
include via Warrenton, 48); Greensboro to Winston-Salem via High Point, 
Highways 10 and 77. 

Mount Airy Transportation Company, Incorporated, Mount Airy, N. C. 

Passenger: From intersection of Pine Street with North Main Street at 
the Post Office in Mount Airy over the streets of said town and the high- 
ways adjacent thereto; from said Post Office corner to Shorttown; thence 
from said Post Office corner on Main Street via Main Street to Fred Ream- 
er's Store; thence from said Post Office corner on East Pine Street to 
Deathridge Store; thence from said Post Office corner on West Pine Street 
to Toast, N. C; then from Post Office corner to Highland Park on Rock- 
ford Street; thence to Dobson; thence from said Post Office corner over 
South Main Street to Banney Town. 

National Convoy and Trucking Company, Charlotte, N. C. 

Freight: Charlotte to Sanford via Albemarle, Badin, Mt. Gilead and 
Troy, Highways 27, 740, 74, 515, 51, 74, 75 and 50; High Point to Denton 
via Asheboro, Biscoe and Troy, Highways 74 and 109; Asheboro to Albe- 
marle via New London, Highways 62 and 80. 

Norfolk Southern Bus Corporation, Norfolk, Va. * 

Passenger: Elizabeth City to North Carolina-Virginia State Line,, des- 
tination Norfolk, Va., via Camden, Sligo and Moyock, 34; Washington, N. 
C, to the North Carolina-Virginia State line, destination, Norfolk, Va., via 
Williamston, Windsor, Edenton, Elizabeth City and South Mills. 

Passenger and Freight: Knott's Island (which is detached from the 
main land of North Carolina by Currituck Sound) from the North Caro- 
lina-Virginia State line to Woodley; thence to Knott's Island for both in- 
terstate and intra-state passenger and freight traffic. 



82 ^N". C. Utilities Commission 

North Wilkesboro-Statesville Motor Express, James S. Caudill, Owner, 
North Wilkesboro, N. C. 

Freight: Statesville and North Wilkesboro, Highways 90 and 16. 
Old South Lines, Incorporated, Charlotte, N. C. 

Passenger: Charlotte, N. C, and the North Carolina-South Carolina 
State Line, via Gastonia and Kings Mountain, 20 and 205. 

Oteen Bus Line, Box 262, Oteen, N. C. 

Passenger: Asheville, N. C. and Oteen, N. C. From Pack Square in Ashe- 
ville over College Street into Highway 20 through Beaucatcher Tunnel 
down to the intersection of Highways 10 and 20 at Jack Weaver's restau- 
rant via the Municipal Golf Course and Recreation Park to property 
known as the United States Public Health Hospital at Oteen. 

Pierce & Formy Duval, Incorporated, F. L. Formy Duval, President, Lake 
Waccamaw, N. C. 

Freight: Wilmington to Charlotte via Bolton, Lumberton, Laurinburg, 
Hamlet, Rockingham, Wadesboro, and Monroe, 20; Boardman to Lumber- 
ton via Fairmont, 72 and 70; Lumberton to Raeford via Red Springs, 70; 
Whiteville to Tabor, 23; Wilmington to Shallotte, 30; Shallotte to White- 
viile, 130; Supply to Southport, 130; Southport to Town Creek, 130 and 
303 for shipments north of Wilmington and west of Bolivia. 

Queen City Coach Company, Incorporated, L. A. Love, Manager, Charlotte, 
N. C. 

Passenger: Wilmington to Asheville via Lumberton, Charlotte and 
Rutherfordton, 20; Fayetteville to North Carolina-South Carolina State 
Line via St Pauls, Lumberton and Rowland, 22; Kings Mountain to North 
Carolina-South Carolina State Line near Grover, 205; Gastonia to Cher- 
ry ville, county highways; Charlotte to Asheville via Lincolnton, Newton 
to Marion, 27, 16, 10; Marion to Bakersville via Spruce Pine, 19; Bat Cave 
to Hendersonville, 28; Murphy to North Carolina-South Carolina Line, 10; 
Charlotte to Gastonia route is understood to include operation via 20 and 
also the old highway via Belmont, McAdenville, Lowell and Ranlo; Wades- 
boro to North Carolina-South Carolina State Line via Morven and McFar- 
lan, 80; from the intersection of North Carolina Highway 151 with North 
Carolina Highway 20 to North Carolina-South Carolina State Line over 
North Carolina Highway 151; Fayetteville to Kenansville Highway 40, 
via Clinton and Warsaw; Kenansville to Kinston, Highway 11 via Deep 
Run; Wilmington to Kure's Beach via Carolina Beach Highway 40. 

Raleigh-Danville Motor Express, C. S. Manooch, 514 East Davie Street, Ra- 
leigh, N. C. 

Freight: Raleigh to Durham, via Henderson and Oxford, 50, 57, 75. 
Rocky Mount-Nokfolk Truck Line, 37 Nebraska Street, Norfolk, Va. 

Freight: Rocky Mount to North Carolina-Virginia State Line, 40, 48, 
12,. via Weldon, Murfreesboro and Como. (For interstate operation only.) 

Receivers of Seaboard Air Line Railway, Norfolk, Va. 
Freight: Monroe to Hamlet over Route 20. 



Decisions and Adjustments of Complaints 83 

Seashore Transportation Company, James M. West, President, New Bern 
N. C. 

Passenger: Washington to Wilmington, via New Bern, 30; Goldsboro to 
Beaufort, via Kinston and New Bern, 10; Kinston to Pollocksville via Tren- 
ton, 12; Beaufort to Atlantic, unnumbered highway; Goldsboro to Rocky 
Mount via Wilson, 40; Wilson to Rocky Mount via Elm City and Sharps- 
burg, Highway 40. 

Smith's Transfer Company, C. H. and V. J. Smith, Lenoir, N. C. 

Freight: Hickory to North Carolina- Tennessee State Line via Morgan- 
ton, Asheville, Marshall, Walnut and Hot Springs, 10 and 20; Hickory to 
Boone, 17; Lenoir to Morganton, 18; Asheville to North Carolina-Tennessee 
State Line, Highway 10 via Waynesville, Dillsboro and Murphy; Asheville 
to Waynesville via Canton, Highway 10. 

Smoky Mountain Stages, Incorporated, Asheville, N. C. 

Passenger: Asheville to North Carolina-Georgia State Line via Murphy, 
10; Dillsboro via Franklin to North Carolina-Georgia State Line, 285, and 
from Murphy to North Carolina-Tennessee State Line, 28; Sylva to Cullow- 
hee, 106; Franklin to Pisgah Forest, 28; and 280 and 191 via Mills River 
and Avery's Creek to Asheville; Rosman to North Carolina-South Carolina 
State Line, Highway 283; Highway 60 from junction with 64 near Renger 
to North Carolina-Georgia State Line near Culberson. 

Southeastern Express Company, F. W. Woods, Secretary-Treasurer, 50 Pryor 
Street, N. E., Atlanta, Ga. 
Freight: Salisbury to Norwood, 80. 

Southerland Brothers, A. D. Southerland and N. M. Southerland, Goldsboro, 
N. C. 

Freight: Goldsboro to Washington, via Kinston and Greenville, 10, 11, 
91, 30. 

Stallings Transfer Service, M. L. Stallings, Spring Hope, N. C. 

Freight: Raleigh to Rocky Mount, 90; Zebulon to Rocky Mount, via 
Wilson, 91, 40. 

Thurston Motor Lines, D. J. Thurston, Box 1003, Wilson, N. C. 

Freight: Goldsboro, N. C, to North Carolina-Virginia State Line via 
Wilson and Rocky Mount, 40, optional over 481; Rocky Mount to Williams- 
ton via Tarboro and Bethel, 90; Williamston to Washington, 30; Wash- 
ington to Wilson via Greenville and Farmville, 91; Wilson to Fayetteville 
via Smithfield and Dunn, Highway 22, with limits on shipments picked 
up in Dunn for Fayetteville or in Fayetteville for Dunn, provided he may 
operate by Erwin over Routes 60 and 55 with shipments not originating 
in Dunn or Fayetteville for points north of Wilson. 

Turner Motor Lines, Incorporated, 210 Lynn Street, Danville, Va. 

Freight: Virginia-North Carolina State Line via Route 70 to Reidsville, 
via Route 158 to Wentworth and via Route 48 to Winston-Salem. 

United Express Company, Henderson, N. C. 

Freight: Henderson to Weldon via Norlina, 48. 



84 N". C. Utilities Commission 

Vinson, I. L., Autryville, N. C. 

Freight: Fayetteville to Wilmington, via Clinton, 24, 60, 40, without 
privilege of local operation between Clinton and Wilmington. 

Virginia Dare Transportation Company, R. B. Etheridge and G. H. Lennon. 
Manteo, N. C. 

Passenger: Manteo to Elizabeth City, via Nags Head, Kill Devil Hill 
and Currituck Bridge, 345, 344, 34; Manteo to Wanchese, 345. 

Freight: Manteo to Norfolk, 345, 344, 34, via Kill Devil Hill, Sligo and 
Moyock; Manteo to Wanchese, 345; Manteo to Stumpy Point via Mann's 
Harbor; Sligo to Elizabeth City, Route 34. 

Virginia-Southern Coach Lines, J. M. Evans, Richmond, Va. 

Passenger: Weldon, N. C, to North Carolina-Virginia State Line, 40; 
Weldon to Rocky Mount, 40 (for intra-state and interstate operation.) 

Virginia Stage Lines, Incorporated, Charlottesville, Va. 

Passenger: North Carolina State Line to Yanceyville on Route 14 and 
from Yanceyville to Haw River on Route 62 and on the north side of the 
railroad track on Route 10 to Burlington. 

Wilmington-Brunswick and Southern Railroad Company. H. M. Shannon, 
Manager, Southport, N. C. 

Passenger: Southport, over Route 201, nine miles to Wilse Smith's; 
thence over county road to Bolivia; thence on Route 201 to the Brunswick 
River; thence over Route 20 into Wilmington. 

Freight: Southport over Route 30 to intersection of Route 303; thence 
over 303 to the intersection of Route 30 south of Town Creek; thence over 
Route 30 to the intersection of Route 20 at Navassa; thence to Wilming- 
ton over Route 20. 

Winston-Elkin Motor Express, V. L. Renegar, Elkin, N. C. 

Freight: Winston-Salem to Elkin, 60, 26, via Yadkinville, Booneville 
and Brooks Cross Roads; Winston-Salem to Elkin, via East Bend and 
Boonville, 60, 67, 26; Elkin to Roaring Gap, 26, for seasonal service. 

WooDiE, E. 0., West Jefferson, N. C. 

Passenger: North Wilkesboro to Statesville via Taylorsville, 16 and 90; 
Taylorsville to Moravian Falls via Lenoir, 90 and 18; Winston-salem and 
North Wilkesboro via Boonville, East Bend, Elkin, Ronda and Roaring 
River over Highways 67 and 268; Lenoir and Shelby via Morganton. High- 
way 18. 

Yadkin Coach Company, George H. Dugan, Salisbury, N. C. 

Passenger: Salisbury to Norwood, via Albemarle, 80; Albemarle to 
Badin county highways. 

Yates, C. B., North Wilkesboro, N. C. 

Freight: North Wilkesboro and Boone, Route 60; thence over Route 
221 to West Jefferson and Jefferson; then over Route 16 to North Wilkes- 
boro, making daily round trips. 



Decisions and x^djl'stments of Complaints 85 

State of North Carolina 
Utilities Commission 

IN RE: AMENDMENT TO MOTOR VEHICLE RULES AND REGULA- 
TIONS ISSUED UNDER CHAPTER 136, PUBLIC LAWS OF 1927 
AND AMENDMENTS THERETO 

Order 

The Commission having under consideration the order dated December 
15, 1927, promulgating Rules and Regulations under Chapter 136, Public 
Laws of 192 7, and amendments thereto, and more particularly having 
under consideration the convenience of the public in the purchase and 
use of tickets and the checking of baggage when travelling by bus, it is 

Ordered, That Rule No. 22 be amended by adding the following paragraph 
at the end of the second paragraph of said Rule as follows: 

"Tickets to he accepted by connecting and interconnecting carrier: All 
carriers shall join in publishing an interline tariff and furnish such tariff 
to all agents on all carriers' lines and all tickets when sold by one carrier 
over another line or lines shall be accepted by the other carrier, or carri- 
ers, at the value of the ticket set forth in the interline tariff and the ac- 
cepting carrier shall render statements to originating carrier, or seller, 
at regular intervals of not more than thirty days, 

'^Passenger to determine ticket destination : At the time of the sale of an 
interline ticket the passenger shall determine the destination and routing 
called for on the ticket, provided such destination be on a known carrier's 
line and recorded in the joint or interline tariff and such interline ticket 
shall not be reissued en route except at the passenger's request written 
on the original ticket for the purpose of correcting a mistake in the 
routing in order to save time in reaching the destination sought. The 
passenger shall be given the advantage of a reduction of fare, if any, 
because of the change in routing and the reissuing carrier shall make 
the adjustment and note same on the original ticket for the information 
of the original seller who shall reimburse the reissuing carrier upon the 
receipt of the statement in which the original ticket, or a portion of the 
original ticket, is rendered. (No reissue of any ticket is contemplated 
which will require additional fare as reissues are permitted exclusively for 
saving time in reaching destination.)" 

It ls further ordered, That Rule No. 59 shall be amended by adding at the 
end thereof the following paragraph: 

"Baggage checked to destination called, on ticket: All baggage shall be 
checked to destination named on the passenger's ticket and when checked 
on an interline ticket shall be checked under the rules and regulations of 
the National Bus Traffic Association which rules and regulations have 
been approved by this Commission." 

The amendment to Rule No. 59 is intended to require all carriers to 
use the interline checks provided by the National Bus Traffic Association 
which has receipts on the baggage check for each line over which the 
baggage is to go to receipt of last carrier of the baggage. This makes 



86 N. C. Utilities Commission 

it easier to trace and places the responsibility in case of loss or damage. 
The failure to check baggage interline has been one of the great obstacles 
to travelling by motor vehicle. Some carriers check baggage anywhere 
and others would not check it beyond the end of their line and it made 
travelling, especially by parents with children, and ladies, extremely 
difficult because they had to hunt up their baggage at each station and 
re-check it. The new rule will correct that trouble and eliminate many 
complaints which we receive every year. 

It is not intended that Union Bus Station agents, or station employees, 
sign receipts for baggage under this rule, unless they in turn shall take 
receipts from the connecting carrier's driver and deliver the connecting 
carrier's driver's receipt to the originating delivering carrier. 

This order shall become effective sixty days from the date thereof. 

This 15th day of August, 1935. 

By order of the Utilities Commissioner: 

[Seal] Stanley Winborne, 

Utilities CoTnmissioner. 

Attest : 

R. 0. Self, Chief Clerk. 

Docket No. 1 

State of North Carolina 
Utilities Commission 

IN RE: INTERSTATE MOTOR VEHICLE CARRIERS OF PASSENGERS 
USING UNION BUS STATIONS 

Order 

Rule No. 24 of this Commission's Rules and Regulations, issued Decem- 
ber 15, 1927, provides that union motor vehicle passenger stations shall 
be established and maintained in accordance with the provisions of the 
Order of June 12, 1925. At that time the Commission issued exclusively 
intrastate franchise certificates, but has since found it expedient to issue 
interstate permits, merely upon the applicants complying with the State's 
police power as concerns interstate commerce. No hearing is held and no 
showing of public convenience or necessity required. So far no routing 
has been designated for such interstate operators. 

Recently the Federal Government has passed a Bus Act, and under 
its provisions a carrier desiring to operate through more than three states 
will not necessarily have to come to this Commission to comply with any 
regulations other than payment of taxes before beginning to operate 
interstate. North Carolina is on the half-way line between the large cities 
and summer resorts of the North and the winter resorts of the South, and 
the majority of the population of America in seeking these resorts must 
almost necessarily pass through this State because of its great length from 
the Smoky Mountain National Park to the Atlantic Ocean. In addition to 
our excellent highway system attracting the motor vehicle traveling public, 
the great population of the states to our north and south, who desire 
to move quickly in speeding the commerce of the country, prefer to use 



Decisions and Adjustments of Complaints 87 

our cross-state routes because of the great mountain barrier on our west. 
These facts and rumors of many organizations being formed at present 
to begin long distance operations for transporting passengers by bus 
makes us doubly apprehensive of its effect upon the established bus 
service. 

Since almost all holders of intrastate franchise certificates have also 
become interstate carriers by holding intrastate certificates from two or 
more states that cross state lines, an exclusively interstate carrier becomes 
a serious competitor of what we here generally style the intrastate carrier. 

This Commission required the establishment of Union Bus Stations in 
June, 1925, before any franchises were issued, and it is believed that this 
one act has done more to stabilize bus traffic and promote its convenience 
to the traveling public than any other single act of this Commission and 
for that reason it is not intended that this agency that has done so much 
to develop and popularize the bus industry shall now be used to destroy 
that which it has fostered. It leaves open an opportunity for one carrier 
to collude with another to operate over the line of his competitor to such 
an extent that it would impair his service and endanger his solvency. To 
require or permit any and every interstate carrier who may choose to 
establish a line North and South across our State to use these Union 
Stations is nothing less than taking property value without due process. 
It is forcing the established franchise holding carriers who have spent 
their, often-time meager, earnings for advertising and building up their 
businesses to share the fruits of their labor with those who did not have 
the confidence of the pioneer operator in its development as a great na- 
tional transportation agency, but who are now willing to step in, because 
of constitutional or other inhibitions on the part of regulatory bodies, 
and place themselves upon an equal basis with those who have made the 
industry what we are so justly proud of today. 

The foregoing relates only some of the reasons why intrastate franchise 
carriers who have maintained Union Bus Stations for all these years 
should not now be required to share such stations with interstate carriers 
who elect to operate over their lines, unless the use of any such station, 
or stations, by any exclusively interstate motor vehicle carrier, or carriers, 
shall meet with the unanimous approval of all the intrastate operators 
using and contributing to the operating expense thereof; 

Therefore, it is ordered, (1) That from and after the date of this order, 
no exclusively interstate carrier shall use or be permitted the use of any 
Union Bus Station for picking up or delivering passengers, even though 
such passengers be for interstate travel only, unless such interstate car- 
rier shall have the unanimous consent of all the intrastate franchise cer- 
tificate holding carriers using such station filed in writing with the regu- 
larly elected, or acting. Union Bus Station Agent; 

(2) That, upon receipt of this order, all intrastate carriers participat- 
ing in the use of any station, where it is known that any exclusively in- 
terstate carrier is using, or may desire to use, any such union station, 
shall immediately transmit a letter in duplicate to the agent, or acting 
agent, advising their positions with reference to the use of the station by 
a particular, or all exclusively interstate carriers, and the agent, or acting 



88 ^N". C. Utilities Commission 

agent, shall within three days notify any officer, or agent, known to him 
to represent any such exclusively interstate carrier, and so advise the 
carriers using his station and the Commission that such notice has been 
served. 

(3) That where such letters are filed by such carriers at such stations, 
the agent, or acting agent, shall keep a file thereof available to inspec- 
tion by all carriers. 

(4) That the agent, or acting agent, of any such station shall keep the 
Commissioner posted as to the result of such notice to any interstate 
carrier in order that the Commission may comply with that provision of 
law which provides that the Commission shall "supervise the operation 
of Union Passenger Stations in any manner necessary to promote harmony 
among the operators." 

This August 28, 1935. 

[Seal] Stanley Winborne, 

By order of the Utilities Commissioner: Utilities Commissioner 

R. 0. Self, Chief Clerk. 
Docket No. 1. 

IN RE: POSTING TIME TABLE AND REPORTING RUNNING TIME OF 
PASSENGER BUSES. 

Order 

Recently a continuous stream of complaints has come to the Commission 
concerning the annoyance the traveling public has in ascertaining the time 
of arrival of buses at the several union stations. 

In the beginning and from time to time, whenever and wherever it ap 
peared that public necessity required, and especially at junction points, or- 
ders have been issued designating certain places as union stations. 

In the earlier stages of the motor bus development, the operation was more 
or less local and long distance connections were not general, making it 
easier for schedules to be maintained, but since the advent of nation-wide 
operation and the cooperation of the several carriers on long haul traffic, 
anything which may cause a bus to depart late from any junction point, 
breakdown or other difficulty, usually affects the operation of all connecting 
schedules that day. 

Prospective passengers, and persons expecting arrival of passengers, are 
often greatly inconvenienced because they cannot obtain information about 
arrivals and it is believed that the development of bus operation has reached 
the point where this information should be provided in reasonable cases, 
therefore, it is 

Ordered, (1) That all carriers holding intrastate franchise certificates un- 
der Chapter 136, Public Laws of 1927, and amendments thereto, for the trans- 
portation of persons for compensation, shall cause to be posted in each union 
bus station in the towns and cities of Asheville, Charlotte, Durham, Fayette- 
ville, Gastonia, Goldsboro. Greensboro, High Point, Lumberton, New Bern, 
Raleigh, Rocky Mount, Salisbury, Shelby, Statesville, Wilmington, Winston- 
Salem, a bulletin board showing the approved schedule departures and ar- 
rivals of all buses at each of said stations. 



Decisions and Adjustments of Complaints 89 

(2) That such bulletin boards shall have a blank space after each sched- 
ule departure time and after each arrival time for the insertion of correct 
information about late departures and arrivals. 

(3) That the several carriers shall provide a register at each of these 
stations and require each of their drivers to register on departing and upon 
arrival, giving the hour due to arrive or depart and the hour of actual ar- 
rival or departure as the case may be. 

(4) That each carrier shall require each bus driver, when running 30 
minutes late, to notify the company's dispatcher or the station agent at the 
next union station on his schedule run giving the exact time that he is run- 
ning late and that station agent or dispatcher shall notify the next union 
station on that run and such other union stations as to which it may appear 
the schedule will be as much as thirty (30) minutes late. 

(5) All Union Bus Station Agents or Dispatchers shall post information 
required in the preceding paragraph upon the bulletin board immediately 
upon receipt. 

(6) That the provisions of paragraph four shall apply to buses departing 
from origin stations. 

(7) That carriers may impose the requirement to give notice as required 
in paragraph four upon the station agents where practicable. 

(8) That the order on this same subject, dated June 16, 1936, be rescinded 
and that this order shall supersede same. 

(9) That this order shall be effective on August 1st, 1936. 
This 3d day of August, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk Utilities Commissioner. 

[Seal] 
Docket No. 766. 

IN RE: REARRANGEMENT OF BASIS OF ALLOCATING EXPENSES OF 
UNION BUS STATION AT ROCKY MOUNT. 

Order 

This matter came before the Commission for hearing upon complaint of 
the Seashore Transportation Company and was heard after due notice on 
April 10, 1936. The Seashore Transportation Company is one of the 
three operators participating in the union bus station at Rocky Mount. 
The other operators are the Carolina Coach Company and the Virginia 
Southern Coach Lines. The Carolina Coach Company operates eight sched- 
ules out of the station and the Seashore Transportation Company and the 
Virginia Southern Coach Lines operates three each. 

It appears that the -expenses of operation of this station for the past year 
amounted to a fraction of 9 per cent of the gross receipts of the station. For 
the past fifteen months the receipts for the station were as follows: Caro- 
lina Coach Company, $24,707.50; Virginia Southern Coach Lines. $10,480.50; 
Seashore Transportation Company, $4,087.15. The expenses as allocated dur- 
ing that period were as follows: Carolina Coach Company, $2,188.39; Virginia 
Southern Coach Lines, $724.32; Seashore Transportation Company, $724.71. 
These figures very clearly substanstiate the complaint of the Seashore Trans- 



90 ]^. C. Utilities Commission 

portation Company, as its total receipts amounted to about two-fifths of the 
receipts of the Virginia Southern Coach Lines, and about one-fifth of the re- 
ceipts of the Carolina Coach Company, yet its prorata part of the expenses 
equaled that of the Virginia Southern Coach Lines and was about one-third 
of that of the Carolina Coach Company; therefore, 

It is ordered. That the present basis of allocation of the expenses at this 
station be abandoned, effective May 1, 1936. The expenses shall be allocated 
to each carrier as follows: Carolina Coach Company, eight and one-fourth 
schedules; Virginia Southern Coach Lines, three and one-fourth schedules, 
and the Seashore Transportation Company, two and one-half schedules; and. 

It is further ordered. That, where either operator mentioned above may 
increase his operation by adding another schedule out of this bus station, 
the said operator's expense shall be treated as previously when such sched- 
ules were added. 

This 28th day of April, 1936. 

[Seal] Stanley Winboene, 

By order of the Commissioner: Utilities Commissioner. 

(S) R. 0. Self, Chief Clerk. 

Docket No. 731. 

ATLANTIC GREYHOUND LINES, PETITIONER, vs. CAROLINA COACH 
COMPANY, RESPONDENT. 

Order 

This case was heard by Stanley Winborne, Chairman; Fred L. Seely and 
Frank W. Hanft, Associate Commissioners, constituting the entire member- 
ship of the Utilities Commission, in the hearing room of the Commission in 
the City of Raleigh, beginning April 24, 1935, and continuing through May 
31, 1935, during which period evidence was offered. On June 13, 1935, oral 
arguments were made before the Commission and later briefs were filed by 
both sides. 

Attorneys for petitioner, Atlantic Greyhound Lines: 

G. K. Hudson, Winston-Salem, 

W. S. Coulter, Burlington, 

I. M. Bailey, Raleigh. 

Attorneys for respondent, Carolina Coach Company: 
Willis Smith, Raleigh, 
J. P. McLendon, Greensboro, 
T. D. Cooper, Burlington. 

The petition of the Atlantic Greyhound Lines, which, was filed on the 26th 
day of December, 1934, asked for a passenger bus franchise certificate from 
Greensboro to Raleigh via Whitsett and Burlington on Route 10; Graham, 
Routes 100 and 62; Carrboro, Chapel Hill and Nelson, Route 54; Morrisville 
and Gary, Route 10 on to Raleigh. 

It was admitted at the hearing: 

First, That the respondent, Carolina Coach Company, now holds, and has 
for many years held, a passenger bus franchise from Greensboro to Raleigh 



Decisions and Adjustments of Complaints 91 

via Whitsett, Route 10, then over Route 100 by Gibsonville and Elon College 
back to Burlington on Route 10, thence along Route 10 via Graham, Haw 
River, Mebane, Hillsboro, Durham, Nelson, Morrisville and Gary to Raleigh, 
with another franchise from Durham to Ghapel Hill over Route 751. 

Second, That the distance from Greensboro to Raleigh over the route pro- 
posed by the petitioner, Atlantic Greyhound Lines, is 76 miles, while the 
route now traversed by the respondent, Carolina Coach Company, is 83 miles. 
Common to both routes are the towns of Whitsett, Burlington, Graham, Nel- 
son and Raleigh, together with Chapel Hill, which is served by the respond- 
ent company by a lateral line from Durham to Chapel Hill, a distance of 
about 12 miles. 

Third, That the distance from Graham, the point of divergence between 
said two routes, and Nelson to point of convergence is 36 miles over the 
route proposed by the petitioner and 43 miles over the present route now 
served by the respondent; the greatest lateral distance between the two 
routes being about 12 miles. 

Fourth, That there is no town on the route proposed by the petitioner 
which is not now served by the respondent; and 

Fifth, That the towns now served by the respondent which are not on the 
proposed route of the petitioner are Gibsonville, Elon College, Haw River, 
Mebane, Hillsboro and Durham, all small towns except Durham. 

From all of the evidence adduced at the hearing, the Commission further 
finds the following general facts: That the Atlantic Greyhound Lines and 
the Carolina Coach Company are the largest bus companies operating in the 
State. Both of said companies are solvent, have comparable equipment and 
are financially able to render efl^cient service and are serving the public in 
the territories where they operate in a satisfactory manner, with the pos- 
sible exception of the line from Durham to Chapel Hill, which some of the 
witnesses at the hearing testified was not satisfactory. 

The Atlantic Greyhound Lines run mainly north and south. Its opera- 
tions in the Piedmont and Western sections from Greensboro west are not 
physically connected with its eastern line from Richmond through Raleigh 
and Fayetteville on to Florida. The center of its activities in the western 
division is at Winston-Salem, from which point its lines radiate in many 
directions and together with its connections serve a large part of the Pied- 
mont and Northwestern part of the State. It has several interstate lines 
from the north converging at Winston-Salem, then going from Winston-Salem 
by Statesville and Charlotte on to points south. Its eastern line, operating 
under the name of East Coast Stages, is an interstate line with connections 
from New York and beyond and passes through North Carolina on to Flor- 
ida with one branch extending from Raleigh to Wilmington and Goldsboro. 
and another from Henderson to Durham. The East Coast Stages was pur- 
chased by the Atlantic Greyhound Lines shortly before the filing of the peti- 
tion in this cause. 

The Carolina Coach Company is almost an east and west line, entering the 
State from Norfolk just north of Elizabeth City. It serves Edenton, Wil- 
liamston, Tarboro, Rocky Mount, Raleigh, Durham, Greensboro, High Point, 
Salisbury and Charlotte, with two other lines serving sections in the east 
connecting with its main line at Tarboro and Raleigh, respectively. The 



92 ^N". C. Utilities Commission 

Carolina Coach Company also operates between Raleigh via Sanford, Wades- 
boro and Albemarle to Charlotte, which line it leased from the Old South 
Lines, Incorporated, which latter company has been purchased by the Atlan- 
tic Greyhound Lines since the institution of this action. 

The petitioner, through its witnesses, C. B. DeBerry, who is its traffic man- 
ager, submitted the following reasons upon which it asks that this Commis- 
sion find that public convenience and necessity demands the granting of the 
franchise in question: (1) That it will save time for passengers traveling 
by bus from east to west in North Carolina; (2) it will add to the conveni- 
ence of the traveling public in eastern and western North Carolina; (3) it 
will minimize transferring and rechecking of baggage and exchanging of 
tickets; (4) it will assure connections between east and west traffic, for the 
reason that buses owned by the same company may be expected to make 
connections; (5) it will mean a better coordination of service over the entire 
system, resulting from constant study, on the part of the officials of the 
Greyhound Company, which is not hardly as feasible in connection with joint 
service, due to varied operating problems; (6) it will provide a connecting 
link from the seaboard operations of the Atlantic Greyhound Lines and its 
connecting carriers to extreme western North Carolina and vice versa; and 
will also afford connections at Winston-Salem with the lines of the Grey- 
hound Company to destinations in West Virginia, Virginia. Ohio, Pennsyl- 
vania, Tennessee, Kentucky and beyond; and (7) it will provide adequate 
convenience in travel for parents, teachers and students between the State 
Universities located at Greensboro, Chapel Hill, Raleigh and other colleges 
located in various parts of the State. 

The witness, DeBerry, offered schedules showing the proposed service. 
Some of the schedules provided for continuous service from Winston-Salem 
to Goldsboro, some from Greensboro to Wilmington, while others required 
changes at Greensboro or Raleigh. 

The witness, DeBerry, further explained that the main reason his com- 
pany was desirous of obtaining this franchise was that the line which his 
company had recently purchased from the East Coast Stages, and which is 
now being operated to Goldsboro and Wilmington, "is losing us money; that 
since we acquired that line we have attempted to find ways to increase the 
traffic on that line since it is not a part of a north-south routing. It is an 
isolated line except for traffic that develops between these points and a few 
coming from Raleigh. We had a similar situation between Greensboro and 
Bristol. We have lines between Roanoke and Winston-Salem that we would 
like to develop traffic for. It is not a question of business between Greens- 
boro and Raleigh, or Goldsboro, or Burlington to Raleigh and Greensboro, 
which we think will make this line pay. We think it is an accumulation of 
business from not only our lines ... in this territory, but beyond in the 
metropolitan cities of Detroit, Chicago, Indianapolis, and points west, in- 
cluding the Shenandoah Valley and our West Virginia territory." (pp. 46 
and 47 of DeBerry's testimony.) 

The petitioner examined many other witnesses, men of prominence 
throughout the State, who testified as to the need for the service proposed 
and explained how in their opinion the convenience of the general public 



Decisions and Adjustments of Complaints 93 

' would be promoted by the granting of this franchise. Also many petitions 
were offered, signed by numerous citizens in various sections of the State, 
asking that the franchise be granted. 

The respondent, Carolina Coach Company, through its witness, H. H. 
Hearn, General Manager of the Company and several other witnesses, 
contended that the ten round trips per day his company was operating 
between Raleigh, Greensboro, and Charlotte, with one additional round 
trip to Durham, was ample to meet the public needs and that there was 
no necessity for additional service between Greensboro and Raleigh; that 
this service has been built up over a period of years at great expense and 
that his company has paid for the franchise rights from Raleigh to 
Greensboro, including the franchise from Durham to Chapel Hill, the sum 
of $334,350; that recently eight new buses had been purchased at a total 
cost of $100,000; that the operation between Raleigh and Greensboro was 
the heart of the entire system; that if the franchise were granted peti- 
tioner, the shorter time required to make the run, due to less traffic con- 
gestion as well as shorter mileage, would result in the respondent com- 
pany losing a large part of the through traffic between Raleigh and 
Greensboro, and Burlington and Raleigh, as well as the through business 
which it now gets from the petitioner's lines both at Greensboro and 
Raleigh. The respondent further contended that, based upon the figures 
submitted by the witness, DeBerry, the actual cost of operating the 
schedules proposed by the petitioner would be $53,000 per year, and that 
in order for the petitioner to even pay expenses the major part of the 
business now enjoyed by the respondent would necessarily have to be di- 
verted to the proposed line, thereby making the respondent's line unpro- 
fitable. It was further contended that the average annual net revenue 
for the respondent's entire system, covering a period of four years ending 
in 1934, was $56,000; that its greatest net revenue of $80,000 was in 
the year 1934; that excluding its Raleigh-Charlotte Division, the re- 
mainder of its system was operated at a loss and that if it is deprived 
of its profits from this part of its system, the operation of its entire 
system will be jeopardized. It was further urged that, should the 
Commission find that public convenience and necessity require the opera- 
tion of a line from Raleigh to Greensboro through Chapel Hill, the re- 
spondent should be permitted to operate same; that on December 19th, 
1928, and again on September 23rd, 1929, it had signified in writing its 
willingness to do so as soon as the road was completed, and now offers to 
operate such schedules as the Commission may direct. 

In reply to the contentions of the respondent, the petitioner contended 
that naturally the proposed shorter line would take some business from 
the respondent, but that it was not its desire or purpose to injure the 
respondent's line. The faith of the petitioner in its new line was based 
upon the new business which the improved service would create. It be- 
lieved that, by connecting its eastern and western divisions, coordinating 
both its intra and interstate schedules and operating through buses, there 
would be a tremendous increase in business not only intrastate but from 
far distant points throughout the nation. But even should the granting 



94 ]^. C. Utilities Commission 

of the franchise result in taking a considerable part of the respondent's 
business the increased convenience to the public would justify the grant- 
ing of the franchise. 

The foregoing contentions, together with the quoted testimony of th© 
witness, DeBerry, present the pertinent substance of the composite testi- 
mony of all the witnesses adduced at the hearing. 

Under the law, as a pre-requisite to the Commission's granting any 
franchise, it is required that there is a public demand for the proposed 
operation and that the public generally will be convenienced thereby. 
While this requirement is not specifically set forth in the Bus and Truck 
Law, as has been pointed out in the briefs filed with the Commission, yet 
the Public Utilities Act of 1933, Consolidated Statutes 1037d, expressly 
defines a public utility to include motor vehicle carriers, and in this Act 
it is required that public convenience and necessity be found by the Com- 
mission before a franchise certificate may be granted. 

Where a franchise certificate is sought for the carrying of either freight 
or passengers, the only authority that the Commission has for granting a 
franchise over a route wholly or partly covered by another franchise is 
given in Section 2613 L, clause (f), of the 1933 Supplement to the Code 
and reads as follows: 

"The Commission may refuse to grant any application for a franchise 
certificate where the granting of such application would duplicate, in 
whole or in part, a previously authorized similar class of service, unless 
it is shown to the satisfaction of the Commission that the existing opera- 
tions are not providing sufficient service to reasonably meet the public 
convenience and necessity and the existing operators, after thirty days' 
notice, fail to provide the service required by the Commission." 

The wording of this statute is confusing and invites argument as to 
what is its real meaning. The respondent contends in its brief that the 
word "may" in view of the context means "must", and that before the 
Commission has any discretion to grant a franchise over a route in whole, 
or in part, covered by another franchise, three things must be found (a) 
that the present operator's service did not reasonably meet public con- 
venience and necessity (b) that the Commission had ordered the present 
operator to so improve his or its service, and (c) that though thirty days 
have expired since said order, the present carrier's service has not been 
made to conform to that order. The respondent argues that the Commis- 
sion first having found that the present operator's service is not satisfac- 
tory, then it is not authorized by law to grant another franchise over 
any part of said route until the present operator has been given thirty 
days to make his or its service satisfactory. 

The present statute includes an amendment of the 1931 law and in 
order to determine the intent of the General Assembly and the meaning 
of the present law it is necessary to compare it with the law before 
amended in 1933. 

Prior to 193 3, the requirements for granting franchises to carriers of 
property and carriers of passengers were different. As to carriers of 
property, the Commission was given unlimited discretion and could not 



Decisions and Adjustments of Complaints 95 

refuse to grant a franchise because of multiplicity of similar operators 
over the same proposed route, but there was an absolute inhibition against 
the granting of an application for a passenger franchise over a route 
where there had already been established one or more passenger lines, 
unless and until the Commission had first found that public convenience 
and necessity demanded additional service, and then only after the exist- 
ing operator had been allowed thirty days to provide such service as the 
Commission found necessary. 

In 19 33 the General Assembly eliminated the difference in require- 
ments as above set out and passed the present statute above quoted; in 
doing this it restricted the discretion of the Commission as to the grant- 
ing of franchises for carriers of property and relaxed its inhibition against 
the exercise of any discretion in the granting of any franchise for the 
carriers of passengers, thereby making the same provision apply equally 
to both types of carriers. In view of the above changes in the law and 
the fact that the General Assembly struck from the law the words "shall 
refuse" and inserted in lieu thereof the words "may refuse", unmistakably 
indicates the intent on the part of the law-making body to give to this 
Commission some discretion in the granting of both bus and truck fran- 
chises over routes in whole or in part covered by existing franchises. 
But, however, the retention in the law of the provision that after public 
convenience and necessity has been found for additional service, the exist- 
ing operator be given thirty days to provide the service required l)y the 
Commission further indicates that the Commission is not to exercise this 
discretion except in rare and unusual cases where it appears obvious that 
it is useless to expect ample and efficient service to be given by the present 
operator within the period of thirty days. 

With this interpretation of the law, the question before the Commission is 
whether or not there is a public necessity for the service proposed by the 
petitioner and also whether the Commission should exercise its discretion in 
granting the franchise to the petitioner without allowing the respondent 
thirty days, or a reasonable time, to provide such service as the Commis- 
sion may find public convenience and necessity demand. The Commission 
is convinced, and so finds, that there is a necessity for a direct line from 
Raleigh via Chapel Hill to Greensboro, and that the public generally will be 
convenienced by such a line, not only will the general public traveling from 
points east and west be enabled to make the trip in a shorter time, but the 
fact that the head unit of the University of the State is located at Chapel 
Hill, to and from which there is necessarily much travel, and the further 
fact that State College, another unit of the University is located at Raleigh, 
and the Woman's College, another unit of the University, is located at Greens- 
boro, between all of which three units there is a constant interchange of 
travel, makes it necessary that transportation facilities be afforded by the 
shortest and most direct route. 

In determining whether or not the Commission should exercise its discre- 
tion in granting the franchise to the petitioner without giving the respondent 
an opportunity to provide the service which this Commission thinks is nec- 
essary, it must be taken into consideration that the respondent, several 
years ago, offered to provide this service at any time the Commission should 



96 ]N[, C. Utilities Commission 

require it; that it is uncontroverted that it has the financial ability to pro- 
vide the service, that it now serves every point which the petitioner proposes 
to serve; that it has invested in its present line between Raleigh and Greens- 
boro $334,350; and that undoubtedly its income from its present operations 
will be materially lessened if the franchise is granted the petitioner. 

The main arguments advanced by the petitioner as to why its operation 
of the line in question would be more advantageous to the public than if op- 
erated by the respondent were (1) that it would give to passengers traveling 
east and west from Greensboro and Raleigh and beyond, each way, the con- 
venience of continuous travel without change, in some cases, from one bus 
line to another; and (2) that it would obviate the necessity and inconveni- 
ence of repurchasing tickets and rechecking baggage in changing from one 
line to another. The Commission recognizes that there is some inconveni- 
ence in changing from one bus line to another and in repurchasing tickets 
and rechecking baggage, but it does not believe that there is such an incon- 
venience as would justify the Commission in ignoring the respondent's in- 
vestment and in materially impairing its income. Continuous travel on the 
same bus or same bus line from every point in the State to every other 
point in the State would undoubtedly be desirable, but it is not within the 
realms of the possible. Obviously, it would not be possible to provide con- 
tinuous travel between the principal cities in North Carolina even if one 
bus company operated all the buses. Just as it would be desirable to have 
continuous transportation from Winston-Salem to Raleigh or to Goldsboro 
and Wilmington, or vice versa, so would it also be desirable to have through 
buses from Rocky Mount or Wilson to Winston-Salem, or from Greensboro 
via Salisbury over the Queen City Coach Company into Asheville and so on 
from betv/een the various points in the State, but in order to do this we 
would have bus lines running over bus lines all over North Carolina, which 
for a short time might afford pleasure and convenience to the public, but 
very soon would result in complete transportation chaos and the financial 
destruction of all the bus companies to the great inconvenience of the public 
generally. We have many separate bus companies operating in the State 
and each is continually striving to improve service in the respective terri- 
tory where it operates, and unless these companies have some assurance that 
their franchises will be protected it cannot be expected that further invest- 
ments will be made. Destroy this assurance and bus transportation in North 
Carolina will immediately deteriorate. We have examined numerous deci- 
sions where the facts were similar to those in the instant case and find that 
the Commissions and the Courts have, with but few exceptions, refused to 
grant franchises providing a duplication of service without first having given 
to the existing operator the opportunity to provide satisfactory service. 

The petitioner has emphasized in support of its argument that since the 
Commission granted a franchise to the Carolina Coach Company to operate 
a line from Raleigh via Creedmoor and Oxford to the Virginia State Line, 
and thence under a contractual arrangement to continue said operation over 
the franchise line of the Great Eastern Stages of Virginia to Richmond, that 
the Commission, if it is to be consistent, should therefore grant the fran- 
chise asked in this case. The Commission does not believe that the facts 
upon which the franchise was granted to the Carolina Coach Company to 



Decisions and Adjustments of Complaints 97 

operate from Raleigh through Oxford and beyond justify and support the 
argument of the petitioner, for the reason that not only are the routes, tra- 
versed by the Atlantic Greyhound Lines and that over which the Carolina 
Coach Company operates between Raleigh and Richmond, widely divergent, 
but the lines over which the Carolina Coach Company was granted a fran- 
chise had for many years prior thereto been served by the Dixie Bus Com- 
pany; and, furthermore, at the time the petitioner purchased from the East 
Coast Stages the line from Raleigh to Richmond, the other line was in full 
operation and the petitioner made its purchase with its eyes wide open and 
with full knowledge as to the existing competition. 

The Commission believes that it has carefully considered all phases of this 
matter, thinking at all times of what is for the best interest of the traveling 
public, not only for the immediate future, but for a reasonable time to come. 
It realizes fully that a great many people in the State have signified their 
desire to have the petitioner operate this line, and, naturally, the Commis- 
sion has been impressed by the views of so large a number, but after a most 
careful consideration of the entire case, the Commission finds that it is un- 
able to conscientiously reach the conclusion that the franchise should be 
granted to the petitioner. 

Wherefore, it is ordered: 

First, That the petition be and the same is hereby denied; 

Second, That the Carolina Coach Company is hereby ordered to provide 
three round trips per day between Greensboro and Raleigh via Chapel Hill 
over Route 10 from Greensboro to Burlington; 10-A from Burlington to Gra- 
ham, then over Route 54 from Graham to Nelson, and Route 10 from Nelson 
to Raleigh, the time of departure of said schedules from both Greensboro and 
Raleigh to be fixed so as to make the closest connection with connecting op- 
erators, both at Greensboro and Raleigh, such schedules to be submitted to 
this Commission for approval; 

Third, that the Carolina Coach Company shall begin said service not later 
than September 10, 1935. 

This 31st day of July, 1935. 

By order of the Commissioner: Stanley Winborne, 

[Seal] R. 0. Self, Chief Clerk. Utilities Commissioner. 

Associate Commissioner Hanft, concurring: 

I approve order both as to reasons and results. 
Associate Commissioner Seely, dissenting: 

My conception of my duty as a Utilities Commissioner is that I should 
strive in every reasonable manner to serve the interest of all the citizens 
of North Carolina and to assist them in acquiring every possible con- 
venience and facility that can reasonably be demanded of Utilities operating 
in our State. In the discharge of that duty, I wish most emphatically to 
dissent from an order which denies the pleadings of hundreds of our best 
people for the granting of a franchise that would bring their communities 
out of obscurity and place them on a great highway travel system. I cannot 
join in an order which stays the hand of progress and condemns our State 



98 ^N". C. Utilities Commission 

to remain subservient to the opposition of a wholly Wall Street controlled 
property using the great highway system of North Carolina. 

When the record in this case is viewed in its entirety and due considera- 
tion is given the demands and convenience of the public, the welfare of the 
existing carriers operating in the State interested in the application, and 
the benefits which will flow from the operation of the schedules proposed by 
the applicant, public convenience and necessity are so overwhelmingly shown 
that the conclusion reached by the majority of the Commission is incompre- 
hensible. 

We have a State of over three million people, and it is clearly shown in 
this record that the granting of this franchise would offer convenience to 
at least a million of the population — offering them a through service in the 
most up-to-date manner. I have no sympathy with makeshifts if modern 
facilities may be furnished at the same cost to the public. 

While I regret to disagree with the majority of the Commission, I most 
assuredly do not care to have placed at my door the charge of lack of courage 
in a matter of this kind. 

Even a casual glance at the map of North Carolina introduced at the 
hearing by stipulation of all parties showing the routes of Atlantic Grey- 
hound Lines, East Coast Stages, and Carolina Coach Company in this State 
is sufficiently convincing. Atlantic Greyhound Lines operates in western 
North Carolina from West Jefferson. Boone, North Wilkesboro, Yadkinville, 
and Winston-Salem into Greensboro; from Elkin, through a connecting car- 
rier. Mount Airy, Pilot Mountain, King, Rural Hall and Winston-Salem into 
Greensboro; from Madison, Stoneville, Walnut Cove, and Winston-Salem into 
Greensboro; from Charlotte, Davidson, Mooresville, Statesville, Mocksville, 
and Winston-Salem into Greensboro, with connections with other carriers 
into a much larger territory in western and northwestern North Carolina. 

East of Raleigh, and with Raleigh as the terminal point, Atlantic Grey- 
hound Lines, through its system and connecting carriers, reaches the whole 
eastern and southeastern sections of the State, including Wilmington, Golds- 
boro, Beaufort, Morehead City, Kinston, Washington, and intermediate 
points. The territory served by Atlantic Greyhound and East Coast Stages 
alone, omitting connections, has a population of a million people, of whom 
several hundred thousand have no public transportation facilities at all 
except those rendered by these companies. 

In the west, traffic on the lines of Atlantic Greyhound Lines and of Caro- 
lina Coach Company moves through Greensboro. Both of the companies 
operate out of Charlotte. Mr. Hearn of the Carolina Coach Company ad- 
mitted in his evidence to the Commission that the companies were competi- 
tors in Charlotte for interstate business moving north, and that is clearly 
the reason it is not possible to effect better coordination of service between 
the two companies at Greensboro. The majority of the Commission over- 
looks this fact when it makes the statement that the Carolina Coach Com- 
pany is primarily a carrier of passengers from east to west in North Caro- 
lina. The admissions also of Mr. Hearn as to schedule proves that competing 
companies gathering traffic into Greensboro destined for points in all direc- 
tions either cannot render effective joint service, or, at the very least, will 
not have the motives for doing so, which are a far better assurance of the 



Decisions and Adjustments of Complaints 99 

kind of service the Commission should seek for the public than any regula- 
tion that can be imposed on the carriers will effect. Such a position must 
have been in the mind of the Commissioner when he granted to the Carolina 
Coach Company a franchise from Raleigh to the Virginia line for which both 
of the companies involved here had filed application, when he said in his 
order that the granting of the application of Carolina Coach Company would 
not create undue competition and that the "paramount consideration for the 
Commission is the granting of the franchise to the applicant which it 
believes will give the best service to the public." 

The evidence of witnesses representing the public to be served is im- 
pressive and convincing. The Commission listened to them for two days. 
Many others attended for the purpose of testifying the same way. We heard 
mayors of towns,^ officers of Chambers of Commerce, leading business and 
professional men from the mountains to the sea, educators such as Dr. 
Rondthaler, and representatives from every strata of the community at 
Chapel Hill. All testified in favor of the application of Atlantic Greyhound 
Lines and to numerous instances out of their own experience as to the 
need of the kind of service proposed by the applicant. The length of this 
opinion will not permit a recitation of the evidence of these witnesses. With 
one voice they gave ample evidence as to the blessing it would be to have 
a great trunk line transportation system at their door. 

The majority recognizes that the public convenience and necessity requires 
service between Greensboro and Raleigh via Chapel Hill, but their error lies 
in their ignoring the evidence of the witnesses and the known facts as to 
the necessity for a much larger service extending all the way across the 
State. The citizens of the "lost provinces" of North Carolina are not inter- 
ested in a makeshift service, but in a modern, continuous and convenient 
service, which will make them a part of the State, and witnesses from all 
sections of the State join in seeking a unified system never before enjoyed 
by the State. It is time, in my opinion, to look at North Carolina as a 
whole, and not as three states, as Dr. Rondthaler put it in his statement 
to the Commission. 

The evidence was not limited to service between Greensboro and Raleigh. 

Chapel Hill was vitally interested in that, as faculty members, students, 
and citizens of the town testified. But all of the witnesses testified as to 
the necessity for permitting Atlantic Greyhound Lines to connect its east 
and west systems in the State so that traffic could move through Greensboro 
and Raleigh by means of a unified, continuous transportation system. Rep- 
resentatives from nearly every community in the State affected beyond 
Greensboro and Raleigh testified to the Commission. Many witnesses testified 
as to the need for the service for the convenience of the students attending 
the many schools and colleges scattered throughout the State. 

I would feel that I had not done my duty if I did not state my opposition 
to a policy which does not consider the needs of all the people of the State. 
I cannot give my assent to an order which I think is marked by a complete 
lack of consideration of the history and needs of the people of our State. 

The main argument of the majority of the Commission against granting 
the franchise to the applicant and in support of requiring the Carolina Coach 
Company to furnish the service between Greensboro and Raleigh is the 



100 ]Sr. C. Utilities Commission 

construction given to 2613 L, clause (f) of the 1933 supplement to the Code. 
You seem to have concluded that when the legislature changed the statute 
from "shall refuse" to "may refuse" the Commission was very strictly limited 
in the exercise of its discretion. I cannot enter into a discussion of technical 
provision in the law with the two lawyers who compose the majority of the 
Commission, but it seems obvious that when the legislature struck out the 
word "shall" and substituted the word "may " it intended to give, and 
thought it was giving the right to exercise wide discretion in the light of 
the needs and convenience of the public. 

Granting, however, the conclusion you have reached to be a correct one, 
I do not see its application to this case because of the obvious facts of 
record that duplication of service is incidentally involved. To apply the con- 
clusion of the majority to the facts in this case means to view the entire 
record only in the light of a service between Raleigh and Greensboro via 
Chapel Hill, if it be conceded that the people between Graham and Nelson 
via Chapel Hill are not interested in the outcome of this matter. I cannot 
apply such a conclusion to the exclusion of the other public interest involved 
in this application. 

I have not overlooked the evidence and contentions of the Carolina Coach 
Company that it will be damaged and its service impaired or destroyed if 
the application is granted. The argument made at the hearing and appar- 
ently adopted by the majority that the Carolina Coach Company will be 
damaged at least to the extent of the cost to Atlantic Greyhound Lines on a 
mileage basis of its proposed operation between Greensboro and Raleigh is 
not convincing. It assumes that all of that revenue will be taken away from 
Carolina Coach Company. That assumption is not supported by proof. That 
conclusion ignores any increase of traffic which follows better service, and 
any benefit to Carolina Coach Company in the interchange of traffic dest'ned 
to non-competetive points on its line. The result of the experimental fare 
of 1^/2 cents per mile of the Southern Railway Company between Goldsboro 
and Winston-Salem affords ample proof of potential traffic in a part of the 
territory affected by the application. 

There is no convincing evidence in the record of this case that the granting 
of the certificate to Atlantic Greyhound Lines will damage Carolina Coach 
Company so as to impair its service to the public or destroy the investment 
of its owners. In my opinion the public convenience and necessity should 
be our first consideration. The inability or unwillingness of an existing 
carrier to see the need for the proposed service or to furnish it is no reason 
for denying it to the public. 

I am as much opposed as the other Commissioners to the duplication of 
service which will have the effect of depriving the public of any service at 
all. But as I have already pointed out, the proposed service in this case 
is not just a duplication of existing service, but the furnishing of a much 
greater and more important public service. The Carolina Coach Company 
has completely failed to show that it will be seriously damaged or its service 
impaired by the granting of a franchise to Atlantic Greyhound Lines. 

It seems to me that I am supported in my conclusions by the law and the 
rulings of various commissions and courts, including the Commissioner him- 
self. The lawyers representing both sides made very full arguments and 



Decisions and Adjustments of Complaints 101 

filed briefs. I have been referred to no authority for the denial of this 
application as I see the facts upon the entire record. On the other hand 
we are referred to numerous rulings of the Interstate Commerce Commission 
in railroad cases which support my views. In those cases public convenience 
and necessity have been found to exist for expedited or more convenient 
service; for more favorable operating conditions; for more efficient and 
economical service; for connecting divided segments of lines, for saving 
distance and time between important points and affording other advantages; 
and for shortening routes, opening up a one line haul, enabling applicant 
to connect with other roads, and compete for through tonnage, expediting 
the movement of coal, and eliminating delays incident to passing through 
congested terminals. In this record the applicant has proved all of these 
elements of public convenience and necessity as applied to the transportation 
of passengers by bus in its whole territory in North Carolina and into and 
from the State. 

I also dissent from that part of the order directing the Carolina Coach 
Company to operate a service between Greensboro and Raleigh via Chapel 
Hill. In the first place, that is not adequate service on the facts of this case. 
In the second place, Carolina Coach Company has filed no application with 
the Commission for a franchise to furnish such service. The representatives 
of the Carolina Coach Company denied in evidence and argument that public 
convenience and necessity for the service exists. One witness for Carolina 
Coach Company actually testified that the road from Graham to Nelson via 
Chapel Hill should never have been built. The Commissioner's order should 
be limited to acting upon the application filed by Atlantic Greyhound Lines. 
In my opinion the statement made by the Carolina Coach Company that it 
wants to render a public service solely for the purpose of preventing another 
company from rendering it, a service which it has had the opportunity to 
render for many years, and of which it even now denies public necessity 
and convenience, is not an application in compliance with the bus law or 
the rules of the Commission. If the Carolina Coach Company desires to 
render the service, it should be required to file its application in proper 
form upon which the Commission may act, if the applicant proves public 
convenience and necessity. A large part of the majority order is devoted 
to discussion that public convenience and necessity must be found to exist. 
My attention has been called to no law that authorizes this Commission to 
order the institution of service over a new route except upon the application 
of some carrier. No such application is before the Commission except that 
of Atlantic Greyhound Lines. The Carolina Coach Company has offered the 
Commission a proposal to operate between Greensboro and Raleigh via 
Chapel Hill upon the condition that the Commission will refuse the present 
application. A proposal for service in that form should not appeal to the 
Commission. It encourages existing carriers to ignore the public need, and 
it gives us absolute assurance that no other carrier will file an application. 
The granting of this certificate to Atlantic Greyhound Lines would not be 
a duplication of existing service for reasons I have pointed out. The grant- 
ing of the franchise to the Carolina Coach Company would be a duplication 
of service, and, as pointed out by the Commissioner in the Raleigh-Oxford 
franchise "such service . . . would be a duplication of its present service 



102 I^. C. Utilities Commission 

and there would be no incentive to do more than give just barely enough 
service to hold the franchise." 

In this connection I think it should be observed also that if the Carolina 
Coach Company is required to furnish the service proposed by the majority, 
in the face of the position taken by this carrier at the hearing of evidence 
and at the oral argument, that public convenience and necessity does not 
require the service, that it cannot be operated at a profit, and that if re- 
quired to operate the service it would want to operate as few schedules as 
possible, the majority will be requiring something that will forever prevent 
the rendering of adequate service from Greensboro to Raleigh via Chapel 
Hill, and points beyond Greensboro and Raleigh as proposed by Atlantic 
Greyhound Lines. The Carolina Coach Company cannot be expected to suc- 
ceed where it does not recognize any chance to succeed. Its record will 
therefore become an obstacle to the showing in the future of public con- 
venience and necessity, and may become the basis of an application to be 
permited to suspend the service until such time as it may wish to reinstate 
it. 

For more than one hundred years North Carolina has sought a system 
of transportation which would bring together every part of the State. Time 
after time it has seen its own efforts to assure such a service destroyed by 
contrary interests seeking other ends. To be a party to the refusing to 
grant a State-wide transportation system by a modern agency which has 
become such a fixed factor in the field of transportation of passengers, and 
is the only agency available to a large section of the State, is not consistent 
with my conception of the duty I owe the State of North Carolina and its 
citizens including the contending parties in this case. 

In my opinion the Commission should direct the issuance of the certificate 
as applied for by Atlantic Greyhound Lines. 

Certification 

The foregoing are true copies of the concurring opinion of Associate Com- 
missioner Hanft and the dissenting opinion of Associate Commissioner Seely. 

Witness my hand and the Official Seal of the Utilities Commission, this 
30th day of August, 1935. 

R. O. Self, Chief Clerk. 

SUPPLEMENTAL ORDER TO THE FOREGOING ORDER IN DOCKET 

NO. 272. 

Order 

Since the foregoing order, concurring and dissenting opinions were writen 
in the matter of the application of the Atlantic Greyhound Lines, Docket 
No. 272, but not issued, this Commission has been advised by the Highway 
and Public Works Commission that highway No. 54 between Nelson and 
Chapel Hill is not in any condition to be used by such equipment as is 
required to be operated in the service between Raleigh and Greensboro 
which makes it necessary to change the routing for the new service as set 
out in the original order, wherefore, it is 

Ordered, Until this Commission is advised by the Highway and Public 
Works Commission that restriction on traffic on highway No. 54, from Nelson 



Decisions and Adjustments of Complaints 103 

to Chapel Hill is removed the Carolina Coach Company is ordered and 
directed to operate its buses in the new service over the following routes: 
From Raleigh to Durham over Route 10; from Durham to Chapel Hill over 
Route 75; thence to Graham^ Burlington and Greensboro over the routes 
specified in the original order; 

It is further ordered, That whereas the schedules prepared by this Com- 
mission to make the same connections at Raleigh and Greensboro for the 
three new round trips per day as were proposed by the Atlantic Greyhound 
Lines shall be revised, due to the additional time required to traverse the 
route by Durham, and therefore, Carolina Coach Company shall immediately 
submit schedules to comply with this supplemental order. 

This cause is retained for such further order, or orders, as this Commis- 
sion may deem necessary. 

This August 30, 1935. 

By Order of the Commission. Stanley Winbokis'e, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 272. 

IN RE: APPLICATION OF MR. R. A. BLIZZARD, TRADING AS BLIZ- 
ZARD MOTOR EXPRESS, OF MOUNT AIRY, N. C, FOR AUTHORITY 
TO HYPOTHECATE LICENSE CERTIFICATE NO. 102 TO BARNWELL 
BROS., INC., FOR THE SUM OF $2,500.00. 

Order 

This is the application of Mr. R. A. Blizzard, trading as Blizzard Motor 
Express, of Mount Airy, N. C, for authority to hypothecate license certificate 
No. 102 to Barnwell Brothers, Incorporated, for the sum of twenty-five hun- 
dred dollars ($2500.00) in order to finance certain losses which he had 
sustained by virtue of fire in his garage destroying trucks. 

Chapter 136, Public Laws of 1927, with amendments thereto provides that 
such certificates cannot be hypothecated as security for indebtedness without 
the permission of this Commission. 

After talking with the petitioner and other parties interested in the loan, 
it has been ascertained that there is apparently nothing to prevent such 
hypothecation; therefore, 

It is ordered, That the petition be granted, and that proper amendments 
be entered on license certificate No. 102 to show that said hypothecation has 
been authorized and that no further hypothecation may be made with refer- 
ence to said certificate except by and with the authority of this Commission. 

By order of the Utilities Commissioner: 

This sixth day of October, 1936. Stanley Winborne, 

Attest: Utilities Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 869. 



104 ^. C. Utilities Commission 

IN RE: APPLICATION ATLANTIC GREYHOUND LINES FOR A FRAN- 
CHISE CERTIFICATE OVER ROUTE NO. 48 FROM WINSTON-SALEM 
TO REIDSVILLE 

Okdkr 

This is the application of the Atlantic Greyhound Lines for franchise for 
the transportation of passengers between Winston-Salem and Reidsville via 
Highway No. 48 via the intervening towns of Walkerton Junction, Stokes- 
dale, and Wentworth. 

This matter was set for hearing at ten thirty a. m. o'clock, Tuesday, 
August 20, 1935, in the Commission's Office at Raleigh and was heard by 
Commissioner Winborne. The petitioner was represented by its attorney, 
Mr. H. G. Hudson, of Winston-Salem and by Mr. F. G. Martel and Mr. J. L. 
Gilmer. No opposition was represented at the hearing except a letter from 
Mr. J. C. Gilley, which stated that he would not object to the Company 
running over his line from Corrum's Store to Reidsville on Route No. 54, 
and the Commission is of the opinion that to grant the application and to 
prohibit the applicant from carrying passengers between these two points 
would not be detrimental to either operation. The petitioner operates the 
through line between Winston-Salem and Greensboro and between Greens- 
boro and Danville via Reidsville, and the route in question will permit the 
applicant to save some mileage in operation between these destinations; 

Therefore, it is ordf:red, That the petition be granted and that Franchise 
Certificate No. 397 be amended to include Route No. 48, Winston-Salem to 
Reidsville via Walkertown Junction, Stokesdale, and Wentworth, limited 
as to passengers originating at, or between, Corrum's Store and Reidsville 
as to transportation between the two points. 

This August 26, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerh. Utilities Commissioner. 

Docket No. 480. 

IN RE: PETITION OF BOONE TRANSFER COMPANY, SPENCER MIL- 
LER, OWNER, FOR A FRANCHISE TO OPERATE MOTOR VEHICLES 
FOR TRANSPORTING FREIGHT FROM WEST JEFFERSON OVER 
ROUTE 221 TO SPARTA AND FROM SPARTA OVER ROUTE 18 TO 
NORTH WILKESBORO AND FROM SPARTA OVER ROUTE 26 TO 
ELKIN; THENCE TO WINSTON-SALEM OVER ROUTE 67 

Order 

This case came before the Commission and was heard September 16, 1935, 
on petition of the Boone Transfer Company, Spencer Miller, Owner, Boone, 
N. C, asking for a franchise certificate to operate property carrying trucks 
from West Jefferson to Winston-Salem via Sparta, Doughton, Elkin and 
Rockford over Routes Nos. 221, 26 and 67; also over Route No. 18 from 
Sparta to North Wilkesboro. 

The petitioner was represented by Hon. W. R. Lovell, Boone, North 
Carolina, and the protestants were represented by Hon. Gordon Hackett, 
North Wilkesboro, North Carolina. 



Decisions and Adjustments of Complaints 105 

From the records offered at the hearing it was shown that Mr. Wade 
Whittington now holds a franchise from North Wilkesboro to Boone over 
Route No. 60 and thence to Jefferson; that C. & S. Motor Express Company 
operates from Winston-Salem to North Wilkesboro over Route No. 60 and 
V. L. Renegar, owner of Winston-Elkin Motor Express Company operates 
from Elkin to Winston-Salem thereby leaving only that part of the route 
asked for in the petition from West Jefferson to Elkin, which is not at 
present covered by a franchise. 

It was made to appear by the evidence adduced at the hearing that the 
present operators above mentioned are giving satisfactory service over the 
routes where they hold respective franchises and that there is now no demand 
for additional service at the points which they now serve. It was further 
shown that if any additional service is necessary, or later becomes necessary, 
that they are in a financial position to provide all service, which conditions 
require. It was further shown that if another franchise certificate is granted 
without restrictions over the route from Winston-Salem to Elkin or from 
Winston-Salem to North Wilkesboro that the effect will be to divide the busi- 
ness and to render it unremunerative to either franchise operator and 
eventually result in either the destruction of one operator or in greatly 
lowered efficiency on the part of both to the damage and inconvenience of 
the shippers generally. On the other hand, strong reasons were presented to the 
Commission for the need of service direct from West Jefferson through 
Sparta into Winston-Salem and the Commission was much impressed by the 
contention of the people in Watauga and Ashe Counties that they could not 
be properly served unless there was through service to and from Winston- 
Salem and that if a franchise were granted the petitioner to Elkin, necessi- 
tating a transfer of shipments at that point to and from Winston-Salem that 
there would result much delay which would greatly inconvenience the 
shippers. 

Considering all these things and desiring to give all the convenience possi- 
ble to the people in West Jefferson and intermediate points without doing 
violence to the present franchise holders, the Commission has reached the 
conclusion that a franchise be given the petitioner from West Jefferson to 
Winston-Salem via Sparta and Doughton with the restriction that said peti- 
tioner shall operate from Doughton, which is a few miles northwest of Elkin, 
to Winston-Salem and return with closed doors and further, in order to 
protect the franchise rights of the present operators to North Wilkesboro, 
that the petitioner's operation should be still further restricted to prevent 
the receiving or delivering of any shipments from Winston-Salem to North 
Wilkesboro or from North Wilkesboro to Winston-Salem. In this way the 
Commission believes that the shippers in Watauga and Ashe Counties will 
be given the service which they desire and, at the same time, the present 
franchise operators will be protected in their rights to render exclusive 
service between Winston-Salem and Elkin and Winston-Salem and North 
Wilkesboro; wherefore, it is 

Ordered, That the petitioner be granted a franchise certificate from West 
Jefferson to Winston-Salem via Sparta and Doughton, strictly upon condition 
that he shall not receive or deliver any intrastate shipments between Win- 



106 ^. C. Utilities Commission 

ston-Salem and Doughton and neither shall he receive or deliver any ship- 
ments from Winston-Salem to North Wilkesboro or from North Wilkesboro 
to Winston-Salem. It is 

Further ordered, That Certificate No. 334, now held by the Boone Transfer 
Company, be amended as hereinbefore indicated and it is 

Further ordered. That that part of the petitioner's application asking for 
a franchise from Sparta over Route No. 18 to North Wilkesboro be and the 
same is hereby denied. 

This tenth day of October, 1935. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 395. 

IN RE: EXCEPTIONS OF CAROLINA COACH COMPANY TO ORDER OF 
THE UTILITIES COMMISSIONER OP OCTOBER THE 3RD, 1934, AND 
PETITION FOR REHEARING IN THE MATTER OF THE APPLICA- 
TION OF LEE M. BARNARD FOR FRANCHISE CERTIFICATE TO OP- 
ERATE AS A MOTOR VEHICLE CARRIER FROM DURHAM TO SPRING 
HOPE VIA BUNN AND WAKE FOREST OVER HIGHWAY NO. 91 AND 
NO. 581, AND FROM SPRING HOPE TO ROCKY MOUNT OVER HIGH- 
WAY NO. 90 

Order 

In the above matter the Utilities Commissioner issued an order on Octo- 
ber the 3rd, 1934, after hearing, granting a franchise as outlined above. 

Now comes the Carolina Coach Company and files eight exceptions to the 
said order of October the 3rd, 1934, and asks that the order be rescinded 
and abrogated and declared void and of no effect, and that the matter be 
reopened and set down for the hearing of protests and objections thereto by 
the Commission, after due and proper notice of said hearing is given to the 
petitioner and other interested parties. 

The Commissioner has gone over each of the eight exceptions and the 
request for rehearing, and is of the opinion that the original order was made 
in accordance with the Statute under the jurisdiction of the said Commis- 
sioner and does not find any ground for the said exceptions, therefore, it is 

Ordered, That all of said exceptions be and the same are hereby overruled 
and the prayer for rehearing is denied. 

By order of the Commissioner: 

This 26th day of November, 1934. Stanley Winborne, 

Docket No. 130 Utilities Commissioner. 

IN RE: APPLICATION OF CAROLINA COACH COMPANY, DIXIE BUS 
LINES, INC., LEE M. BARNARD, EAST COAST STAGES, INC., FOR 
FRANCHISE FROM RALEIGH TO VIRGINIA STATE LINE VIA CREED- 
MOOR AND OXFORD 

Order 

The hearing in the above entitled case, wherein the Carolina Coach Com- 
pany, the Dixie Bus Lines, Inc., Lee M. Barnard, and East Coast Stages, Inc., 
had each separately filed application for franchise from Raleigh to the Vir- 



Decisions and Adjustments of Complaints 107 

ginia State Line, was had before the undersigned Commissioner on October 
25, 1934, at 11 o'clock A. M. in the Hearing Room of the Utilities Commis- 
sion, Raleigh, North Carolina. 

Each applicant was either present or represented by counsel and each 
applicant offered evidence purporting to show its or his peculiar fitness and 
ability to operate said line. 

There has in the past been repeated demands by the public at Creedmoor 
and Oxford and intermediate points for bus service to Raleigh, and hereto- 
fore the Commission has found that public convenience and necessity de- 
manded said service and has twice previously granted franchises to operate 
over said route in question. The operators to whom franchises were here- 
tofore granted failed to give satisfactory service and the Commission is, 
therefore, especially desirous, at this time, of awarding the franchise to an 
operator who is able to render adequate service and comply with the provi- 
sions of law and requirements of the Commission. 

Various deductions can be reached from the contentions made by the 
applicants at the hearing, involving the questions of competition between 
applicants; the rather obvious desire of some of the applicants to obtain the 
franchise for the purpose of reselling same to interstate operators and other 
eventualities which might result from the granting of this franchise to any 
particular applicant, all of which the Commission has considered. The mat- 
ter of paramount consideration for the Commission is the granting of the 
franchise to the applicant which it believes will give the best service to the 
public. 

When the Commission granted the franchise over this route in November, 
1933, to the Dixie Bus Lines, Inc., it stated in its order: "If there is a public 
convenience to be served, it would be in making connection at Raleigh with 
other carriers for points beyond." The Commission is still of the opinion 
that the local travel over the route stated would hardly be sufficient to justify 
the operation and that in order to give the traveling public between Oxford 
and Raleigh via Creedmoor satisfactory service, the operator must be able 
to make profitable interstate connections and financially able to provide 
suitable equipment for interstate service. 

In our former order, above referred to, the Commission expressed appre- 
hension that, in the operation of interstate service by the connection of the 
Dixie Bus Lines, Inc., with some other connecting operator, there might be 
developed unfair competitive methods and the Commission attempted in its 
order to obviate unfair competition by prescribing certain conditions and 
limitations upon the said Dixie Bus Lines, Inc. However, for various reas- 
ons, the operation by the Dixie Bus Lines, Inc., was not satisfactory. 

Although it appears that the Dixie Bus Lines, Inc., has changed hands 
and is now owned by the Nevin lines, with which it formerly connected 
with its interstate operations, and although the Commission is assured that 
the reasons why the operations by the said Dixie Bus Lines, Inc., under our 
former order, were unsatisfactory, have been removed by the purchasing of 
new equipment, yet the experience of the Commission with the Dixie Bus 
Lines, Inc., and that of the Nevin Lines, which directed the operation of 
the Dixie Bus Lines, Inc., for some time before its operations ceased, are 
such that the Commission can not again grant its application for franchise. 



108 ISr. C. Utilities Commission 

In considering the application of Lee M. Barnard, the Commission has 
reached the conclusion that the sort of operation, which it believes is 
contemplated by this applicant, will not result in the kind of service which 
the public demands and would not be sufficiently profitable to the applicant 
to justify its continuance. 

Both the Carolina Coach Company and East Coast Stages, are well 
equipped to provide the necessary service. The East Coast Stages now op- 
erates between Raleigh and Oxford via Henderson and also between Raleigh 
and Oxford via Durham. It also operates a line over Federal Highway No. 1, 
from Raleigh north to Richmond. There is, however, no reason for the East 
Coast Stages to operate from Raleigh to Oxford via Creedmoor, either for 
the purpose of making a northern connection or in order to give service be- 
tween Raleigh and Oxford; such service by the East Coast Stages would be 
a duplication of its present service and there would be no incentive to do 
more than to give just barely enough service to hold the franchise. 

The Carolina Coach Company operates over a large part of the State, 
running west and east from Charlotte to Elizabeth City, and with all of its 
lines, together with the connecting lines which feed it, does not extend north 
beyond the State line west of Highway No. 30, through Gates County. The 
East Coast Stages, whose operations are directed by the Greyhound Lines, 
have various points of entry into the State from the North. Therefore, the 
importance to the Carolina Coach Company of a line from Raleigh to the 
Virginia State line, via Creedmoor and Oxford, where it may make connec- 
tion with other lines operating from the State line to Petersburg and Rich- 
mond, are too apparent to need further comment, and while the income from 
the intrastate operation might not be profitable, the interstate business would 
justify the Carolina Coach Company in operating said line in a manner 
highly satisfactory to the needs of the people within our State. 

A year ago the Commission did not look with favor upon establishing 
competing lines between Raleigh, Petersburg and Richmond, believing at 
that time that there was insufficient travel between said points to support 
two bus lines. Since then conditions have radically changed and travel by 
bus has greatly increased. The present bus line operating between Raleigh 
and Richmond passes through the State to and from points far north and 
south, and much of the time these interstate buses are filled when they reach 
Raleigh. The Commission now believes that the establishment of the second 
line operating between these points not only will not create undue competi- 
tion, but that said second line is necessary to relieve congestion in travel. 
The Virginia Commission seems to be of the same opinion, since it has re- 
cently granted the franchise from Richmond to the State line over the same 
route, which is a continuation of the route for which franchise is herein 
sought. 

Upon a full consideration of all the questions involved and all phases of 
the matter, as presented to and considered by the Commission, the Commis- 
sion has reached the conclusion that the franchise should be awarded to the 
Carolina Coach Company. 

Wherefore it is ordered. That the certificate now held by the Carolina 
Coach Company, covering their routes within the State, be amended so as 
to include the route in question from Raleigh to the Virginia State Line 



Decisions and Adjustments of Complaints 109 

via Creedmoor and Oxford, upon the condition that the said Carolina Coach 
Company submit to and file with the Commission schedules of operation to 
be approved by the Commission and in all other respects comply with the 
law and regulations of the Commission before beginning operation over said 
route. 

This 8th day of December, 1934. 

Docket Nos. 177, 178, Stanley Winborne, 

180, 187. Utilities Commissioner. 

IN RE: DE LUXE BUS COMPANY APPLICATION FOR FRANCHISE TO 
OPERATE BUS LINE WITHIN CITY OF HIGH POINT TO MUNICIPAL 
PARK AND INTO SAID PARK 

Order 

This application for a Franchise Certificate to operate motor vehicle sum- 
mer seasonal service between the City of High Point and the Municipal Park 
was filed on the 18th of May and set for hearing and heard on June 8, 1936, 
at 2:30 P. M. o'clock. Petitioner proposes to operate from city limits to park 
with closed doors. The petitioner was represented by counsel, and the Caro- 
lina Coach Company which now holds a franchise through High Point over 
the same route herein proposed was represented by counsel and entered no 
objection to the application, but its attorney stated that it was the desire 
of the Carolina Coach Company to cooperate with the City of High Point 
in getting such service to its Municipal Park. Mr. K. Herman Fulk was 
represented by attorney McAnally and gave notice to the Commissioner that 
he had no objection to the granting of the application, provided it was not 
an exclusive franchise as he intended to file application for a similar service 
over another part of the City of High Point but over the same highway to 
the park outside the City of High Point. 

The petitioner filed evidence of permit from the City to operate the service 
proposed on the city streets. The Commission finds that public convenience 
and necessity will be served if the application is granted with the conditions 
above mentioned attached thereto. 

Therefore, it is ordered. That the petition be granted for operation of a 
summer seasonal service over the streets named in the permit issued by the 
City of High Point to the city limits, destination the City Park; and 

It is further ordered, That the fare shall be twenty-five cents round trip, 
and no one-way fares, and 

It is further ordered, That the petitioner shall operate between the city 
limits and the park with closed doors, and 

It is further ordered, That certificate be issued when the petitioner has 
filed aproved insurance and equipment sheets. 
This 8th day of June, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 743. 



110 [N". C. Utilities Commissiotst 

IN RE: PETITION OF ET & WNC MOTOR TRANSPORTATION COM- 
PANY FOR A FRANCHISE CERTIFICATE AUTHORIZING THE OPERA- 
TION OF MOTOR VEHICLES FOR TRANSPORTING PASSENGERS 
OVER N. C. HIGHWAY 194 FROM ELK PARK TO VILAS, AND OVER 
N. C. HIGHWAY 60, WITH CLOSED DOORS, FROM VILAS TO BOONE 

Okder 

This matter was heard by the Commission on February 28, 1936, at 12 
o'clock M., after giving due notice by publication, according to law, in the 
press of the State, and mailing written notices to connecting carriers, E. C. 
Woodie, West Jefferson, N. C, and Atlantic Greyhound Lines, Charleston, 
West Virginia, more than ten days prior to the date of hearing. 

The petitioner in the case was represented by J. E. Vance, Vice President, 
and J. H. Epps, Attorney; no opposition appeared. Since the petitioner has 
operated this road for a number of years by permission of this Commission, 
there appears to be no reason why the application should not be granted and 
Certificate No. 181 be so amended. 

Therefore, it is ordered, That the petition be granted, and that Certificate 
No. 181 be amended to include N. C. Highway 194 from Elk Park to Vilas 
and N. C. Highway 60, with closed doors, from Vilas to Boone. 

At the time of the hearing, Mr. Vance, Vice President of the petitioner, 
requested the approval of a contract between ET & WNC Motor Transporta- 
tion Company and the Queen City Coach Company, Incorporated, which 
would entitle the Queen City Coach Company to operate over the franchise 
lines of the ET & WNC Motor Transportation Company in this State. Upon 
examination of the contract, and upon the finding that the same was pre- 
sented to the Commission by Mr. L. P. McLendon, Attorney for the Queen 
City Coach Company, and, the Commissioner being satisfied that such an 
operation would afford greater convenience to the traveling public, said 
contract was ordered approved. 

This February 28„ 1936. 

Attest: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 661. 

IN RE: PETITION OF J. M. EVANS, INDIVIDUALLY AND TRADING AS 
VIRGINIA-SOUTHERN COACH LINES, FOR AUTHORITY TO SELL 
MOTOR VEHICLE FRANCHISE CERTIFICATE NO. 290 TO VIRGINIA 
CAROLINA COACH COMPANY; AND THE PETITION OF THE VIR- 
GINIA CAROLINA COACH COMPANY TO PURCHASE THE CERTIFI- 
CATE HELD BY J. M. EVANS 

Order 
This cause came before the Commission upon the petition of J. M. Evans, 
individually and trading as Virginia-Southern Coach Lines, to sell Franchise 
Certificate No. 290 and such operating rights as it conveys to the Virginia 
Carolina Coach Company and the petition of the Virginia Carolina Coach 
Company for authority to purchase said Certificate No. 290. Application was 
filed by the petitioners on November 2, 1936, and notice published in accord- 



Decisions and Adjustments of Complaints 111 

ance with the statute in the Evening Telegram, paper located and published 
in the City of Rocky Mount, N. C, reciting the facts contained in the said 
petition and that the same would be heard by the Utilities Commissioner of 
the State of North Carolina at 11 o'clock A. M. on November 16, 1936. Evi- 
dence of such publication has been duly filed in this office by the editor and 
publisher of the paper above named. 

The time for hearing having arrived, it was presented in evidence that 
the original Certificate 290 was granted to J. M. Evans, trading as the Vir- 
ginia-Southern Coach Lines, on August 29, 1929; that the said Certificate has 
been renewed Trom time to time and has been in full force and effect since 
the original time of issue; and that J. M. Evans, owner, now desires to sell 
the- same to the Virginia Carolina Coach Company, a Virginia corporation 
with offices located at 510 East Davie Street, Raleigh, N. C. Mr. Evans has 
been a satisfactory operator during the whole time that he has held this 
certificate. The Virginia Carolina Coach Company is asking authority to 
purchase this Certificate 290 and to operate the same in connection with the 
lines operated by the Carolina Coach Company. It is understood that the 
Virginia Carolina Coach Company will be operated or controlled by the pres- 
ent operators of the Carolina Coach Company if this petition is granted, 
and, therefore, it is believed that the service to the public will not suffer by 
this transfer and that it will enhance the public convenience. 

Therefore, it is ordered. That the petition be granted and that when the 
law has been otherwise complied with, the Franchise Certificate now held by 
the Virginia-Southern Coach Lines, J. M. Evans, owner, be transferred to 
the Virginia Carolina Coach Company and that the proper entries be made 
on the new Certificate to show that the same is transferred from Certificate 
No. 290. 

This November 16, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 882. 

IN RE: PETITION OF GASKIN FREIGHT AND PASSENGER SERVICE 

Order 

This is the application of Messrs. S. E. and Hubert Gaskins of Merrimon, 
N. C, for a motor vehicle franchise to carry freight and passengers from 
Beaufort, N. C. Postoffice over Craven, Ann and Live Oak Street and on 
Route No. 10 five miles; thence on a sand road, State maintained, for 
eighteen (18) miles to the Town of Merrimon; and thence by boat for one 
mile across South River to Lukens, and return each day except Sundays. 

The petitioner in this case is a mail carrier and he also desires to carry 
freight and passengers for the convenience of the isolated community he 
serves with mail and is to be commended for desiring to comply with the 
law. Mr. Gaskins advertised this application as was required by the Com- 
mission and a copy of evidence of notice of publication was filed by the 
editor of the Twin City Herald, published at Morehead City. 

The date of hearing arrived and no opposition appeared, therefore, the 
application appearing to be in due form. 



112 'N. C. Utilities Commission 

It is ordered, That the petition be granted and that the Gaskin^ Freight 
and Passenger Service be given a franchise for tlie operation aslted when 
the petitioner has otherwise complied with the law by filing insurance and 
equipment specifications for obtaining tags from the Department of Revenue. 

This 25th day of November, 1936. 

By order of the Commissioner: Stanley Winhorne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 840. 

• 

IN RE: PETITION GREAT EASTERN STAGES OF VIRGINIA, INCOR- 
PORATED, FOR AUTHORITY TO CONTRACT WITH THE CAROLINA 
COACH COMPANY TO OPERATE CERTAIN SCHEDULES FROM THE 
VIRGINIA LINE TO THE RALEIGH UNION BUS STATION 

Order 

This is the application of the Great Eastern Stages of Virginia, Incorpo- 
rated, which holds a certificate from Richmond, Virginia, to the North Caro- 
lina State Line via Petersburg and Clarksville, for authority to contract with 
the Carolina Coach Company to exchange certain schedules which will 
permit the Great Eastern Stages of Virginia, Incorporated, to operate from 
the North Carolina-Virginia Line to the Union Bus Station in Raleigh over 
Highways No. 75 and No. 21. Such agreements between companies where 
both hold franchise certificates from this Commission are generally per- 
mitted, but since this petitioner does not hold certificate from this Comm's- 
sion it became necessary for it to make application for authority to contract 
with the Carolina Coach Company in order to perform the service which it 
undertakes under the contract, therefore, 

It is ordered. That the petitioner is hereby permitted and authorized to 
contract with the Carolina Coach Company for the performance of the ser- 
vice contained in the contract, dated the 21st day of December. 1934, and 
approved by this Commission on January the 4th, 1935, and to operate its 
buses under the said contract over the franchise of the Carolina Coach Com- 
pany from the Virginia State Line over Highways No. 75 and 21 via Oxford 
and Creedmoor, destination Raleigh Union Bus Station, upon the filing of 
the required public liability and property damage insurance and such tax 
compliance as the law provides, and this approval is further conditioned 
upon the fact that the said petitioner, the Great Eastern Stages of Virginia, 
Incorporated, shall not give, or attempt to give, any more service on said 
line than that for which it has contract with the said Carolina Coach Com- 
pany, and that it will not attempt any greater or further operation in this 
State than that outlined in said contract with the Carolina Coach Company; 
it is further 

Ordered, That any violation of the laws of this State applicable to Bus 
Companies, or rules or regulations made thereunder, including the condi- 
tions in this order, shall void the authority and permission granted herein. 



Decisions and Adjustments of Complaints 113 

after ten days' notice, from the Utilities Commissioner, in writing, served 
upon any employee of the said Great Eastern Stages of Virginia, Incor- 
porated. 

Dated at Raleigh, North Carolina 

This 4th day of January, 1935. Stanley Winborne, 

By order of the Utilities Commissioner. Utilities Commissioner. 

The date and year above written 

Attest: 

R. O. Self, Chief Clerk. 

Docket No. 232. 

IN RE: PETITION OF HARRY L. GROVER FOR A FRANCHISE CER- 
TIFICATE TO OPERATE A MOTOR VEHICLE FROM NEWFOUND GAP 
IN BUNCOMBE COUNTY TO J. S. WELLS STORE ON HIGHWAY NO. 63; 
THENCE THROUGH TOWN OF LEICESTER, N. C, THENCE TO WEST 
ASHEVILLE OVER THE COUNTY ROAD. 

Order 

This petition was filed with this office on January 18, 1935, and set for 
hearing several times and postponed but it was finally set and heard on 
Wednesday, August 14, 1935, at 3 o'clock p. m., after said hearing date was 
advertised according to Section 3, Chapter 136, Public Laws of 1927, in the 
Asheville Times. No opposition has been registered with this office in con- 
nection with this application and no opposition appeared on the date of the 
hearing. None of the highway outside the city of Asheville, which this ap- 
plicant proposes to operate, is now included in any certificate and there is 
no bus service of any kind over the routes indicated in the application and 
the petitioner proposes to put on adequate service to serve the territory in 
question. 

A number of letters, endorsing the petitioner, from the leading business 
men of Buncombe County were filed with the application which indicates that 
he is of good moral character and financially solvent and is in every way 
qualified to operate the line for which he has applied; therefore, it is 

Ordered, That the petition be granted and that certificate be issued to the 
applicant when the law has been complied with with reference to filing in- 
surance. 

This 19th day of August, 1935. 

By order of the Utilities Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 292. 

IN RE: PETITION HERBERT C. HENSLEY, OPERATING AS HENSLEY 
MOTOR LINES, WITH OFFICES AT 101 SOUTH LEXINGTON AVE., 
ASHEVILLE, NORTH CAROLINA, FOR FRANCHISE CERTIFICATE 
FROM ASHEVILLE TO SPRUCE PINE VIA BURNSVILLE OVER U. S. 
HIGHWAY No. 19. 

Order 

This application for authority to operate from Asheville to Spruce Pine 
via Burnsville, North Carolina, over United States Highway No. 19 was filed 



114 ^N". C. Utilities Commission 

with this Commission on October 28, 1936, and was set for hearing on No- 
vember 18, 1936, at eleven-thirty o'clock a. m., in the office of the Commis- 
sioner. The application was properly advertised, as required by law, in the 
Asheville Citizen on October 31, November 1, and 2, 1936, and the evidence 
of publication was duly certified under seal by the proper officials of the 
said publication above named. 

The time for hearing having arrived, the petitioner appeared in his behalf. 
No opposition appeared. Other operators in that territory were present 
during the hearing and stated that service was needed over this route, and, 
since no certificate is outstanding over the route, the operators desired a 
franchise carrier with whom to do business to points on the proposed route, 
therefore, nothing appearing to the contrarj^ 

It is ordeeed, That the petition be granted, and when the petitioner, Her- 
bert C. Hensley, complies with the law by filing public liability and property 
damage insurance, certificate shall issue and also authority shall be issued 
for the petitioner to purchase tags from the Department of Revenue in ac- 
cordance with the statute. 

By order of the Utilities Commissioner: 

This December 8, 1936. Stanley Winborne, 

Attest: Utilities Commissioner. 

R. 0. Self, Chief Clerk. 

Docket No. 873. 

IN RE: APPLICATION INTER-CAROLINAS MOTOR BUS COMPANY, 
JOEL W. WRIGHT, OWNER. 

Order 

This application was set for hearing at ten o'clock a. m. Friday, January 
4, 1935, and was advertised in the Charlotte News in issue of December 22 
1934. 

The application calls for reinstating operation over Route No. 15 from 
Charlotte to North Carolina-South Carolina State Line. The applicant 
operated this line at one time, but had to cease operation during a period 
of construction of the road between the State Line and York, South Carolina, 
during which time he had detoured to connect at Gastonia for Charlotte. 
However, because of the fact that the operation over Route No. 15 from the 
State Line into Charlotte had been closed for a considerable period of time, 
it was thought best to have a new application and advertise same in order 
that any person who had any objection might appear and present same. 

The hour and date of hearing having arrived, no protest having been re- 
ceived, and no appearances having been made at the hearing, 

It is ordered. That the said application be granted and that certificate is- 
sue in accordance with the application. 

By order of the Commissioner: Stanley Winborne, 

This January 4th, 1935. Utilities Commissioner. 

Docket No. 255. 



Decisions and Adjustments of Complaints 



Hi 



IN RE: PETITION L. C. JUMPER FOR FRANCHISE TO OPERATE BUS 
LINE FROM A DESIGNATED STATION AT MONTREAT, N. C, TO 
BLUE RIDGE, N. C, VIA BLACK MOUNTAIN. 

Order 

This matter came before the Commission on the application of L. C. Jump- 
er for a franchise to operate the bus line the distance of about six miles be- 
tween Montreat and Blue Ridge, via Black Mountain. 

This matter was properly advertised in the press of the State, and writ- 
ten notice was given to the Queen City Coach Company that operates on 
Highway No. 10 through Black Mountain, and the matter was set for hear- 
ing on April 14, 1936, at eleven o'clock a. m. 

No opposition appeared at the hearing and we had communications on file 
from the connecting carriers that they rather welcomed the institution of 
such service; therefore, 

It is ordered. That petition be granted and that certificate issue, when the 
applicant has complied with the law by filing insurance, proper equipment 
and specifications for authority to purchase tags from the Department of 
Revenue. 

This 27th day of April, 1936. 

By order of the Commissioner: Stanley Winborne. 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 679. 



IN THE MATTER OF APPLICATION OF J. R. LEWIS OPERATING AS 
LINCOLNTON BUS COMPANY FOR FRANCHISE CERTIFICATE FROM 
GASTONIA TO LINCOLNTON OVER NORTH CAROLINA HIGHWAY 
No. 16. 

Order 

This is application of J. R. Lewis, operating as Lincolnton Bus Company, 
which was set for hearing and notices issued according to law and also pub- 
lished in the press of the State. No one appeared in opposition to the fran- 
chise but Messrs. Rhyne and Spargo of Gastonia filed a telegram at the time 
of hearing stating that they had operated that line with a taxi and would 
like to continue to do so but, inasmuch as they had not qualified for this, 
the application before the Commission had priority and it appeared that 
there was no authorized service on the line in question; therefore, it is 

Ordered, That the petition be granted over Highway No. 16 between Gas- 
tonia and Lincolnton, the certificate to be issued as soon as the petitioner 
has otherwise qualified by filing the necessary papers required under the 
rules of the Commission. 



By order of the Commission 
Attest : 

R. 0. Self, Chief Clerk. 
This July 1. 1933. 
Docket No. 404. 



Stanley Winborne, 

Utilities CoTnmissioner. 



116 ]Sr. C. Utilities Commission 

IN RE: APPLICATION OP M. AND M. MOTOR COMPANY FOR FRAN- 
CHISE TO OPERATE A FREIGHT MOTOR LINE FROM NORTH 
WILKESBORO TO CHARLOTTE VIA TAYLORSVILLE, STATESVILLE, 
MOORESVILLE OVER ROUTES No. 16. 90 AND 21, AND ALSO FROM 
NORTH WILKESBORO TO CHARLOTTE VIA TAYLORSVILLE, CON- 
OVER, NEWTON AND LINCOLNTON OVER ROUTES NO. 16, 321 AND 27. 

Order 

This case was heard in the hearing room of the Commission in Raleigh at 
11:30 o'clock a. m., Tuesday, February 12th, 1935. The petitioning company 
was represented by Charles C. McNeill, M. B, McNeill and J. Gordon Hackett, 
all of North Wilkesboro, and opposed by J. S. Caudill, Ed Caudill, Charles 
H. Fredrickson and Eugene Trivette, attorney, representing the various mo- 
tor express lines appearing in the record of the hearing. 

From the evidence adduced at the hearing, the undersigned Commissioner 
finds the following evidence: That on the twenty-sixth day of December, 1934, 
the M. and M. Motor Company filed application for franchise to engage as a 
common carrier of freight over the routes between North Wilkesboro and 
Charlotte hereinbefore mentioned; that at the time said application was 
filed the Farrar Motor Express, of Statesville, owned and operated by virtue 
of a franchise from this Commission a motor freight line from North Wilkes- 
boro to Statesville; that the service rendered by the Farrar Motor Express 
was admitted at the hearing not to have been satisfactory; that pending the 
application of the petition of the M. and M. Motor Company, the Farrar Mo- 
tor Express transferred its franchise to the North Wilkesboro-Statesville 
Motor Express, owned by J. S. Caudill, who is now operating same; that said 
transfer of said franchise from the Farrar Motor Express to J. S. Caudill 
seems to have been approved by the Clerk of this Commission by letter, al- 
though full compliance with the law and regulations of the Commission 
applicable to transference of franchise have not been fully complied with. 
It was further made to appear at said hearing by petitions and letters ad- 
dressed to the Commission that there is a need and necessity for the opera- 
tion of a freight motor line direct from North Wilkesboro to Charlotte, and 
that there is sufficient business to support both the Caudill Line and the M. 
and M. Motor Company Line. The necessity for this line and the amount 
of business which North Wilkesboro and Charlotte might afford was contro- 
verted at the hearing and it was even contended that there was a misunder- 
standing upon the part of the signers of the petitions as to how the line was 
to be operated and as to the knowledge on the part of the petitioners at the 
time they signed the petitions that the Caudill line was making connection 
at Statesville with the Fredrickson Motor Express thereby affording service 
from North Wilkesboro to Charlotte. In order that it might be clearly estab- 
lished that the petitioners knew what they were signing, following the hear- 
ing new petitions were circulated both by the proponents and opponents of 
the line when the full facts were laid before them and said petitions were 
again returned to the Commission. From the number of petitioners advocat- 
ing the M. and M. line and some of the Caudill line, it appears to the Com- 
mission that there are a sufficient number of people interested in both lines. 



Decisions and Adjustments of Complaints 117 

if they divide their patronage as they have divided their petitions, to justify 
the operation of both the Caudill and M. and M. lines between North Wilkes- 
boro and Charlotte. 

Prom the facts hereinbefore mentioned, the Commission is of the opinion 
that,, if both the M. and M. Motor Company and the Caudill line stood upon 
a parity so far as ability to operate is concerned, preference should be given 
to the M. and M. line for the reason that their petition was filed asking for 
this franchise before the transfer by the Farrar Motor Express, which was 
not giving satisfactory service, to the Caudill line, and that there was an 
inadvertence in the office of the Commission allowing the transfer of the 
Parrar franchise to Caudill pending the application of the M. and M. line for 
franchise. The proper procedure should have been to have cancelled the 
Parrar franchise from North Wilkesboro to Statesville and have required 
Caudill to have filed an application to be heard at the same time the ap- 
plication of the M. and M. line was heard. However, since the Parrar line 
has been transferred to Caudill, and said transfer was recognized by letter 
from this office, the propriety of the transfer is behind us if full compliance 
is made by the transferee, Caudill, with the law and regulations of the Com- 
mission, but the Commission has considered this in passing upon the peti- 
tion of the M. and M. Motor Company. 

Considering all the facts in the case and the apparent public convenience 
and necessity as established by the numerous petitions to the Commission 
for direct service from North Wilkesboro to Charlotte, in addition to the 
service now furnished by the Caudill Motor Express and its connecting car- 
rier, the Predrickson Motor Express Line; 

It is now, tiierefoke, ordered, That franchise be granted to Charles C. Mc- 
Neill and M. B. McNeill, trading as the M. and M. Motor Company, to oper- 
ate a motor freight line from North Wilkesboro to Charlotte via Taylorsville, 
Conover, Newton, and Lincolnton over Routes No. 16, 321 and 27, provided 
that the said M. and M. Motor Company shall not deliver or accept any 
freight or express at any point which is now served by the Predrickson Mo- 
tor Express Lines. 

It is further ordered. That franchise herein granted shall be executed and 
delivered to the M. and M. Motor Company upon and not until the said com- 
pany has fully complied with the law and regulations of the Commission 
applicable to franchise operators. 

It is further ordered. That the application of the M. and M. Motor Com- 
pany for franchise certificate from North Wilkesboro via Taylorsville, States- 
ville and Mooresville to Charlotte over Routes No. 16, 90 and 21 be and the 
same is hereby denied. 

By order of the Commission: 

This March 15th, 1935. Stanley Winborne, 

Docket No. 271. Utilities Commissioner. 



118 ^. C. Utilities Commission 

IN RE: MOUNT AIRY TRANSPORTATION COMPANY, INC., FOR FRAN- 
CHISE CERTIFICATE TO OPERATE BUSES IN SAID TOWN AND ON 
CERTAIN HIGHWAYS ADJACENT THERETO AND FROM MOUNT 
AIRY TO DOBSON. 

Order 

The petitioner originally made inquiry about this application and was ad- 
vised to consult the city authorities of Mount Airy to ascertain with what 
favor they would look on an intra-city bus operation. The representatives of 
the petitioner called to see the City Commissioners, six of whom, including 
the Mayor, signed a petition to this Commission stating that this was the 
first application they had received requesting a franchise over the streets of 
said town and, after they had considered the proposed routing, they saw no 
reason why they could not grant the franchise or take any action connected 
therewith which would authorize the operation under agreeable restrictions 
which would meet the approval of the town and the applicants but that the 
said application would have to be held by the board pending the expiration 
of a certain time limit before action could be taken thereon under the char- 
ter. 

The petitioners also took the matter up with the Atlantic Greyhound Lines, 
which line operates buses through said town north and south and was ad- 
vised in writing by the Vice-President and Acting General Manager that "we 
hereby consent to issuance of a certificate to the above company for the pur- 
pose of hauling local business and commuter passengers in and around 
Mount Airy — particularly on Highway No. 52 north and south of that city 
for a distance of one mile." 

Since there appears to be no opposition to the said operation, after suffi- 
cient notice to the press and otherwise, the Commission believes that public 
convenience would be served by that line and for that reason it is 

Ordered, That said petition be granted and that certificate be issued when 
the applicant has complied with the law of filing insurance and proper speci- 
fications for equipment. 

This 14th day of September, 1936. 

By order of the Utilities Commissioner: Stanley Winborne, 

Attest: R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No, 811. 

IN RE: PETITION P. & F. MOTOR EXPRESS, INCORPORATED, TO EX- 
TEND PRESENT OPERATION. 

Order 
This is the application of P. & F. Motor Express, Incorporated, of Lake 
Waccamaw, North Carolina, to extend its present truck operation under 
Franchise Certificate No. 295, 

It now holds franchise to operate as follows: 

"Between Wilmington and Hamlet, Highway No. 20; Boardman to 
Lumberton via Fairmont, Highways Nos. 72 and 70; Lumberton to Rae- 
ford via Red Springs, Highway No. 70. Also to handle shipments orig- 
inating at points east of Hamlet destined to Charlotte and shipments 



Decisions and Adjustments of Complaints 119 

originating in Cliarlotte destined to points east of Hamlet but may not 
handle shipments destined to or from points between Hamlet and Char- 
lotte." 

which routing was named on the face of Franchise No. 395, dated October 
7, 1932. This franchise was amended September 19, 1933, to include the 
following: 

"Wilmington to Charlotte via Bolton, Lumberton, Laurinburg, Ham- 
let, Rockingham, Wadesboro and Monroe, Highway No. 20; Boardman 
to Lumberton via Fairmont, Highways 72 and 70 ; Lumberton to Raef ord 
via Red Springs, Highway 70." 

It was further amended September 30, 1932, to include Whiteville, N. C, to 
Tabor, N. C, Highway No. 23. 

The petition under consideration at the present time was filed by the peti- 
tioner to include Wilmington to Shallotte, State Highway No. 30, and Shal- 
lotte to Whiteville, State Highway No. 130. This petition was set for hear- 
ing August 20, 1935, at 3 p. m. in the office of the Commission in Raleigh. No 
appearances were made in opposition to the franchise and it is apparent that 
the petitioner can give this additional service in connection with present 
operation, and it appears further from the evidence that the public con- 
venience will be enhanced by the granting of the application. 

Therefoee, The petition is granted and Franchise Certificate No. 295 shall 
be amended to include the highways petitioned for. 

This September 12th, 1935. 

By order of the Utilities Commissioner: Stanley Winrorne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 481. 

IN RE: APPLICATION OF QUEEN CITY COACH COMPANY, INCOR- 
PORATED, FOR FRANCHISE CERTIFICATE TO OPERATE BUSES 
FROM FAYETTEVILLE TO KENANSVILLE OVER HIGHWAY NO. 
40 VIA CLINTON AND WARSAW; AND FROM KENANSVILLE TO 
KINSTON OVER HIGHWAY NO. 11 VIA DEEP RUN 

Order — Franchise No. 240 

This matter coming on for hearing before the undersigned Commis- 
sioner and being heard on February 13, 1935, at 11 o'clock, a. m., in 
the offices of the Utilities Commission, in the City of Raleigh, at which 
time the petitioner, the Queen City Coach Company, Inc., was represented 
by Mr. L. A. Love, President, and Mr. K. J. Kindley, Manager, and there 
appeared in opposition to the granting of said franchise Mr. Jas. M. West, 
President of the Seashore Transportation Company, New Bern, N. C, and 
Messrs. A. D. Southerland and N. M. Southerland, of Southerland Broth- 
ers, Goldsboro. 

The applicant, the Queen City Coach Co., Inc., offered petitions from 
the citizens of Warsaw, Fayetteville, Kenansville, Kinston, Roseboro and 
Clinton, together with letters from County and City officials,, along the 



120 X. C. Utilities Commission 

proposed route, asking that said franchise certificate be granted and 
setting forth the need of the service and conveniences which it would 
afford the travelling public. 

Testimony was further adduced showing the financial responsibility of 
the applicant to render satisfactory service upon a schedule meeting the 
convenience of the travelling public, including the sort of equipment 
vrhich the applicant proposed to operate over the proposed route and 
connections with the proposed line with other lines from various sections 
of the State. 

Mr. Jas. M. West, President of the Seashore Transportation Company 
appeared in opposition to the granting of the certificate and testified 
that this line was formerly operated by Southerland Brothers and a Mr. 
Mitchell; that said Southerland Brothers and Mitchell divided the line, 
giving to Mitchell that part from Kinston to Fayetteville; and that during 
the depression, Mr. Mitchell became financially embarrassed and aban- 
doned the service. Mr. West further testified that in August, 1933, he 
conferred with Mr. R. O. Self, Chief Clerk of this Commission, concerning 
granting franchise, and that he was told that said franchise would be 
given to him, all of which is evidence by a letter, dated July 26, 1933. 
from him to Mr. Self and Mr. Self's reply, dated August 2nd, 19 33. 

At the time of the hearing and the testimony of Mr, West, Mr. R. O. 
Self v/as absent from the Commission on account of sickness and continued 
so indisposed for some time thereafter. In order that no injustice might 
be done and that a full consideration be given to whatever understanding 
there might have existed between Mr. West and Mr. Self, the order in 
this case was deferred until the undersigned Commissioner could com- 
municate with Mr. Self and ascertain the true facts. Later the Commis- 
sioner did communicate with Mr. Self and was told that there was no 
further understanding between him and Mr. West, other than that men- 
tioned in his letter to Mr. West of August 2nd, 1933, in which he wrote: 

"As to the availability of the franchise between Fayetteville and 
Kinston, I advise that I think this is available at this time. We 
have had a number of folks who have tried to operate it, but failed. 
I would like to see you operate both of these lines." 

The statement in this letter clearly shows that the route was available 
at that time and makes no promise to keep it open for Mr. West or 
Southerland Brothers for the future and, in fact, there would have been 
no authority, under the law, for holding open a route for a prospective 
applicant for any period of time and certainly not for nearly two years. 
Should the said witness West or the said Southerland Brothers have ap- 
plied in August, 19 3 3, for a franchise certificate, said application would 
have been given prompt attention. 

Considering the testimony of all of the witnesses and all the petitions 
and other evidence offered at the hearing, the Commissioner is of the 
opinion that the best interest of the public will be served by granting 
the franchise certificate to the Queen City Coach Co., Inc. 

Wiip:kefokk rr is xow ordered. That the Queen City Coach Company, Inc., 
be granted a certificate to operate passenger buses from Fayetteville to 



Decisions and Adjustments of Complaints 121 

Kenansville over Highway No. 40, via Clinton and Warsaw, and from 
Kenansville to Kinston over Highway No. 11, via Deep Run, upon the said 
Queen City Coach Co., Inc., complying fully with the requirements of the 
Commission as to insurance and all rules and regulations of the Com- 
mission. 

This 8th day of May, 1935. 
By order of the Commissioner: Stanley Winborne, 

Utilities Gommissione?'. 
Docl?:et No. 40. 

IN RE: APPLICATION OF QUEEN CITY COACH COMPANY FOR 
FRANCHISE CERTIFICATE TO OPERATE FROM INTERSECTION 
OF NORTH CAROLINA HIGHWAY NO. 151 WITH NORTH CARO- 
LINA HIGHWAY NO. 20, NEAR MONROE, NORTH CAROLINA, TO 
NORTH CAROLINA-SOUTH CAROLINA STATE LINE, OVER NORTH 
CAROLINA HIGHWAY NO. 151 

Order 

The petitioner having met all requirements of this office, and the law, 
and on the date of hearing having no opposition, 

It is hereby ordered, That franchise certificate number two hundred 
and forty be amended to include the route from intersection of North 
Carolina Highway No. 151 with North Carolina Highway No. 20, to 
North Carolina-South Carolina State Line, over North Carolina Highway 
No. 151. 

By order of the Commission: 

This March 12th, 1935. Stanley Winborne 

Docket No. 320. Utilities Comiiiissioiier. 

To WHOM IT MAY CONCERN: 

This is to certify that the Queen City Coach Company, of Charlotte, N. 
C, filed application with this Commission on March 30, 1935, to operate 
as follows: 

"From Maxton to the intersection of Highways 71 and 22 via Red 
Springs over Highway 71. From Raeford to Lumberton via Red 
Springs over Highway 70 and 211. From Lumberton to N. C.-S. C. 
State Line over Highway 70. From Chadbourn to N. C.-S. C. State 
Line over Highway 202." 

Since this application was filed here and its granting depended upon 
obtaining a certificate from the South Carolina Commission, the petitioner 
was given authority to operate temporarily, pending acquisition of cer- 
tificate in South Carolina, Highway No. 70 to the South Carolina State 
Line via Fairmont and from Fairmont to Boardman via Highway No. 71, 
pending hearing in this State provided applicant obtains a certificate in 
South Carolina to connect this route. 

This June 18, 19 35. Respectfully, 

(S) R. O. Self. Chiej Clerk and Director of Motor Transportation. 

Docket No. 352. 



122 'N. C. Utilities Commission 

IN RE: PETITION OF QUEEN CITY COACH COMPANY, INCOR- 
PORATED, FOR FRANCHISE OVER HIGHWAY NO. 7 BETWEEN 
THE BUS STATION IN GASTONIA AND THE BUS STATION IN 
KINGS MOUNTAIN 

Order 

This cause arises upon the petition of the Queen City Coach Company, 
Incorporated, to operate over Highway No. 7, between the Bus Station in 
Gastonia and the Bus Station in Kings Mountain. 

About the time this petition was filed and advertised, as provided by 
law, objection was filed by the Atlantic Greyhound Lines because of a 
previous agreement which had been made between the Queen City Coach 
Company and the Queen City Lines whereby these two companies became 
joint operators over old Highway No. 20 and present Highway No. 74. When 
the Queen City Coach Company was apprised of the objection, it stated 
to the Commission in writing that it had no objection to the Queen City 
Lines and its successor, the Atlantic Greyhound Lines, having an equal 
right over Highway No. 7, thereupon, the Atlantic Greyhound Lines with- 
drew its objection in writing and the day of the hearing having arrived 
and the matter having been adjudicated, as stated by agreement, neither 
petitioner nor objectors appeared to make further representation with 
reference to the matter; therefore, it is 

Ordered, That the petition of the Queen City Coach Company, Incor- 
porated, be granted and that Franchise Certificate No. 240, now out- 
standing in favor of the said Queen City Coach Company, Incorporated, 
be amended to include the route referred to above, and, it is 

Further ordered. That Franchise Certificate No. 397, now outstand- 
ing in the name of the Atlantic Greyhound Lines, be amended to include 
operating rights on the same route as outlined in the agreement dated 
August 24, 1932, as set forth on the back of Franchise Certificate No. 
240, outstanding in the name of the Queen City Coach Company, Incor- 
porated. 

By order of the Utilities Commissioner 

This November 30, 1936. Stanley Winborne, 

Attest: R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 826. 

IN RE: APPLICATION OF R. E. RICKS, OPERATING AS R. E. RICKS 

MOTOR EXPRESS 

Order 

This is the application of R. E. Ricks, operating as R. E. Ricks Motor 
Express of Greenville, for a franchise to operate from Greenville, N. C, 
to Raleigh over U. S. Route No. 2 64; Greenville to Washington, N. C, 
over U. S. Route No. 2 64; Washington to New Bern over Route No. 17; 
New Bern to Greenville over Route No. 43 and Greenville to Rocky 
Mount over Route No. 43 for the purpose of transporting freight and 
express. 

This case was set for hearing on several occasions but was postponed 
for various reasons but was finally set for hearing June 25, 1935, at 10:30 



Decisions and Adjustments of Complaints 123 

o'clock in the oflBce of the Commission in Raleigh and the hour for hear- 
ing having arrived the petitioner did not appear. Operators appearing 
at the hearing in opposition to the application were R. S. Koonce of the 
Motor Transit Company, Raleigh, N. C, Thurston Motor Lines, Wilson, 
N. C, Stallings Transfer Service, Spring Hope, N. C, Capital Coast Ex- 
press, Clayton, N. C, Habit Motor Lines, Edenton, N. C, and N. B. & C. 
Motor Lines, Washington, N. C. 

The petitioner not having appeared in behalf of his petition and not 
being otherwise represented it is, therefore. 

Ordered, That the case be dismissed. 

By order of the Commission: 

Attest: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

This July 9, 1935. 

Docket No. 288. 



IN RE: APPLICATION OF S. & S. BUS LINE FOR MOTOR VEHICLE 
CERTIFICATE OVER U. S. HIGHWAY 150 FROM SALISBURY TO 
SHELBY VIA MOORESVILLE AND LINCOLNTON 

Order 

This is an application for an operation over routes where a greater 
portion of the mileage asked for has never had operation. That part of 
the proposed operation from Lincolnton to Shelby was once operated by 
one or more lines which had to give it up because of insufficient business; 
that between Mooresville and Lincolnton has never had bus service, and 
that between Mooresville and Salisbury has never had bus service, and 
there was no evidence before the Commission to show there was demand 
for service over these highways. At one time there was a small service 
between Mooresville and China Grove which was abandoned because of 
inadequacy of business. 

At the hearing on this application there appeared to be no objection 
and it was intimated at the hearing that upon full compliance with certain 
requirements the certificate would be granted, but, since said hearing, 
this Commission has made a more thorough investigation of the routes 
proposed and has discussed the matter in person with the applicant, and 
it now appears that there is very little, if any, public demand for such 
operation, and that it is exceedingly doubtful whether such operation 
would be remunerative. 

Passengers out of Salisbury now have an opportunity to go to Moores- 
ville via Statesville and Charlotte, and to Lincolnton via Hickory and 
Charlotte, and to Shelby via Charlotte and Morganton. Passengers leav- 
ing Shelby, Lincolnton or Mooresville have an opportunity to go to other 
points through the terminals mentioned and general travelers are accus- 
tomed to using these routes. No evidence was presented which would 
justify a conclusion that the proposed operation would permit a sufficient 
service to divert the traffic from its usual course. 



124 W. C. Utilities Commission 

The Commission does not find that from the evidence presented that 
public convenience and necessity will be served by the granting of this 
application, therefore, 

It is ordered, That the petition be denied. 
This twenty-seventh day of July, 193 6. 
By order of the Commissioner: Stanley Winbokne, 

(S) R. 0. Self, Chief Clerh. Utilities Commissioner. 

Docket No. 654. 

IN RE: PETITION S. & S. BUS LINE TO OPERATE FROM CRAMER- 
TON TO GASTONIA VIA McADENVILLE AND LOWELL, INCLUDING 
SPENCER MOUNTAIN HIGHWAY TO PRISCILLA MILLS (OPERA- 
TION PRINCIPALLY ON ROUTE 2 9 BUT NOT TO INCLUDE OPERA- 
TION ON FEDERAL ROUTE 74, STATE ROUTE 20, EXCEPT TO 
CROSS SAID HIGHWAY BETWEEN CRAMERTON AND McADEN- 
VILLE) 

Order 
This application was made by Mr. R. F. Rhyne for operation of buses 
between the points named principally for the purpose of serving textile 
mill employees in that vicinity who do not have bus service at the time 
of day when the mills change shifts. 

This service could hardly be rendered with profit or convenience by an 
intercity operation which has any other service in view except that of the 
mill employees. At the hearing, the Queen City Coach Company appeared 
and opposed this operation because it might create competition for a 
distance of about nine miles between the vicinity of Cramerton and 
Gastonia on Highway 74, State 20, but, inasmuch as the service applied 
for here crosses Highway 20 between Cramerton into McAdenville, it is 
not thought that the competition created by this contact with Highway 
2 can materially affect the service between Gastonia and Charlotte. 

The Commission endeavors at all times to grant such applications as 
will serve best the convenience of the public and at the same time main- 
tain the integrity of franchises previously issued. With these reasons in 
view, the Commission is of the opinion that granting this application 
will serve the public convenience and necessity of the mills in question, 
therefore. 

It is ordered, That the petition be granted and that the S. & S. Bus 
Line be given a certificate from Cramerton north across Route 20 to 
McAdenville and Lowell, including Spencer Mountain Highway to Pris- 
cilla Mills and back to Gastonia over Highway 2 9, subject to the following 
conditions: 

First, that it file schedules here bearing the approval of the mayors of 

Cramerton, McAdenville and Lowell, if there be such, and in the absence 

of the mayors that the approval of the mill ofiicials be consulted; and 

Second, that rates be submitted to this Commission and approved by 

it; and 

Third, that motor vehicles with adequate seating capacity be provided 
for this service; and 



Decisions and Adjustments of Complaints 1^25 

Fourth, that insurance be provided and filed with the Commission as 
now prescribed by its Rules and Regulations; and 

Fifth, that when the above provisions have been met certificate shall 
issue upon the approval of equipment and the authorization of the pur- 
chase of bus tags and the satisfaction of the Department of Revenue with 
reference to operator's ability to meet tax obligations. 

This twenty-seventh day of July, 1936. 

By order of the Utilities Commissioner: Stanley Winbokne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 655. 

IN RE: APPLICATION OF RECEIVERS OF THE SEABOARD AIR 
LINE RAILWAY COMPANY FOR MOTOR VEHICLE FRANCHISE 
CERTIFICATE OVER HIGHWAY NO. 20, BETWEEN MONROE AND 
HAMLET 

Supplemental Order 

Whereas the Corporation Commission on June 9, 1932, after hearing 
on April 12, 1932, granted a franchise certificate, to be issued upon 
compliance with provision of the law and rules and regulations made 
thereunder, to operate motor vehicles for the transportation of property 
between the cities of Monroe and Hamlet, North Carolina, over Highway 
No. 20; and 

Whereas, the respondents, the Miller Motor Express and the North 
Carolina Truck Owners' Association, took an appeal to the Superior Court 
of Wake County, no certificate was actually issued, but the outcome of 
the case on appeal was awaited by the Commission; and 

Whereas, Judge N. A. Sinclair at the second November term of the 
Superior Court of Wake County, 19 32, overruled the exceptions of the 
appellant and affirmed the order of the Commission; and 

Whereas, the Clerk of the Superior Court failed to certify the action 
of the said Judge to this Commission, the actual issuance of the certifi- 
cate had been overlooked until this time; and 

Whereas, upon motion of the attorneys for the petition. Judge M. V. 
Barnhill at the second January term of Wake County Superior Court, 
193 6, made an order declaring the appeal from the Superior Court to 
the Supreme Court annulled because the appellants did not perfect their 
appeal, and thereby ordered and adjudged that said appeal had been 
abandoned and was void and of no effect, and that the judgment rendered 
by Judge Sinclair, presiding at the second November Term, 1932, was in 
all effects confirmed; and 

Whereas, the Clerk of said Court has now certified these affirmations 
to this Commission, it is now ordered that the Franchise Certificate 
issue as provided in the Commission's order as of June 9, 1932, upon 
compliance with the provisions of the law and the rules and regulations 
made thereunder by the Commission, and 



126 ]^. C. Utilities Commission 

It is further ordered, That, since the petitioner, the receiver of the Sea- 
board Air Line Railway, now comes into court and presents an 
acceptable automobile insurance policy in the amounts required by this 
Commission, in a company licensed to transact business in this State, 
which policy contains the North Carolina endorsement required by this 
Commission and description of equipment operated, that the said certi- 
ficate issue. 

By order of the Commissioner: 

On this February 14th, 1936. Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 7339. 

IN RE: APPLICATION OF SMOKY MOUNTAIN STAGES, INCORPO- 
RATED, FOR FRANCHISE CERTIFICATE TO OPERATE BETWEEN 
ROSMAN, N. C, AND THE N. C.-S. C. STATE LINE VIA HIGHWAY 

No. 283. 

Order 

The petitioner having met all requirements of this oflEice, and on the 
date of hearing having no opposition, 

It is hereby ordered, That franchise certificate number four hundred be 
amended to include the route from Rosman, North Carolina to the North 
Carolina-South Carolina State Line via Highway No. 283. 

By order of the Commission. 

This February 6, 1935. Stanley Winborne, 

Attest: Utilities Commissioner. 

Docket No. 260. 

IN RE: APPLICATION OF D. J. THURSTON, OWNER OF THURSTON 
MOTOR LINES, FOR FRANCHISE TO OPERATE BETWEEN RA- 
LEIGH AND ZEBULON OVER HIGHWAY NO. 90 AND FROM ZEBU- 
LON TO WILSON OVER HIGHWAY NO. 91 

Order 

This is the petition of D. J. Thurston, owner of Thurston Motor Lines, 
for franchise to operate as above stated. 

Hearing was held in this matter on June 25, 1935. Mr. Thurston 
appeared in his own behalf and there appeared in opposition Mr. O. B. 
Moss, representing the Stallings Transfer Service, Spring Hope, N. C, 
Mr. C. H. Ware, General Freight Agent, Norfolk Southern Railroad Com- 
pany, Norfolk, Va., and Mr. C. W. Johnson, representing the railway 
Express Agency, Raleigh, N. C. 

This application was made at the time Mr. R. E. Ricks' application 
was pending for a franchise over the same route and Mr. Thurston being 
an operator in that vicinity was desirous that Mr. Ricks not operate over 
his line and therefore made application and, under consideration, it was 



Decisions and Adjustments of Complaints 127 

found that the Stallings Transfer Service was giving satisfactory service; 
therefore, it is 
Ordered, That the petition be dismissed . 
By order of the Commission: 

Attest: Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner. 

This 31st day of July, 1935. 
Docket No. 298. 

IN RE: APPLICATION OF TURNER MOTOR LINES, INC., FOR 
FRANCHISE CERTIFICATE TO OPERATE FOR TRANSPORTING 
FREIGHT FROM THE STATE LINE OVER ROUTE NO. 70 TO REIDS- 
VILLE, OVER ROUTE NO. 158 TO WENTWORTH AND OVER ROUTE 
NO. 4 8 TO WINSTON-SALEM 

Order 

This is the application of Turner Motor Lines, Incorporated, of Dan- 
ville, Virginia, for franchise to operate a motor express and freight 
service between the State Line, near Danville, over Highway No. 70 to 
Reidsville, via Highway No. 158 to Wentworth, and via Highway No. 4 8 
to Winston-Salem. 

The Commission heard this case on June 28th after notice had been 
given to all affected parties, and Mr. J. M. Goldston, Manager, Goldston 
Motor Express, of Spray, North Carolina, and Mr. J. A. Manooch, Man- 
ager, Danville-Durham Motor Freight Line, of Danville, Virginia, appeared 
with reference thereto. 

It was finally agreed that the manner in which the Commission pro- 
posed to let the applicant operate would not be an infringement on the 
rights of the above named operators, and the decision was announced 
from the Bench giving Turner Motor Lines the franchise applied for on 
condition that all shipments from Danville or Winston-Salem, destined 
for Leaksville-Spray, shall be turned over to Goldston Motor Express 
acting as connecting carrier at Reidsville. In other words, the Turner 
Motor Lines are not to let their franchise trucks go into Leaksville- 
Spray to compete with Goldston Motor Express. Turner Motor Lines, 
Incorporated, has no authority and none is given in this order to pick 
up shipments in Greensboro consigned to other points within the State 
of North Carolina, therefore, it is 

Ordered, That the petition be granted subject to the above named condi- 
tions. 

This 15th day of July, 1935. 

Attest: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 409. 



1'2S N. C. Utilities Commission 

IN THE MATTER OF THE APPLICATION OP VIRGINIA DARE TRANS- 
PORTATION COMPANY FOR FRANCHISE TO OPERATE AS MOTOR 
VEHICLE CARRIER OP FREIGHT FROM SLIGO TO ELIZABETH 
CITY, OVER ROUTE NO. 34 

Order 

This matter was heard before me, the undersigned Commssioner. upon 
tlie application of the Virginia Dare Transportation Company to amend 
its present franchise certificate from Manteo to the Virginia State Line, 
by adding thereto the following: "from Sligo to Elizabeth City for the 
carrying of freight and express only." 

The petitioner was represented by Honorable R. B. Etheridge and Mr. 
R. W. Griffin, of the Griffin-Coppersmith Fuel Company, appeared in op- 
position to the granting of said application. 

The Griflln-Coppersmith Fuel Company now holds a franchise between 
Elizabeth City and Manteo and Mr. Griffin, of said Company, contended 
that there was not enough business between Elizabeth City and Manteo 
to justify the granting of another franchise and that the present business 
which he enjoyed there was not sufficient to even justify his daily opera- 
tions throughout the year. 

Prom the testimony adduced at the hearing, it appears that the Griffin- 
Coppersmith Company has never attempted to serve Manteo, for the 
reason that the daily boat from Elizabeth City and the trucks from Nor- 
folk afforded ample service; that most of the business of the Griffin-Cop- 
persmith Line was for Kitty Hawk, except during the summer when it 
did get some business from the people occupying the cottages at Nags 
Head; that said line had never "bothered" with the fish business and 
that in the town of Wanchese it had only one good customer, to whom it 
transported feed stuffs. 

It was further shown that the Griffin-Coppersmith Company was en- 
gaged in the fuel business in Elizabeth City and that it only operated one 
truck on the line in question and that during the winter months no daily 
schedule is operated, during which time arrangements are made with the 
Eastern Carolina Service Company to take the shipments by boat. 

The petitioner offered testimony tending to show that the towns of 
Manteo and Wanchese together have a population of about 2500; that 
the chief industry of said towns is fishing; that there are more out-going 
than in-going shipments; that the movements are to, rather than from, 
Elizabeth City; that the Griffin-Coppersmith Company, being located in 
Elizabeth City, was not in a position to furnish the service necessary at 
Manteo and Wanchese, for the reason that the very nature of the ship- 
ments require that the operating Company has its headquarters in Manteo 
or Wanchese, so as to be ready, at all times, to carry shipments of fish 
to the market, and that unless the service is available at all times, on 
account of the perishable nature of the business, it would be moved by 
"For Hire" or contract operators, and that the reason that the Griffin- 
Coppersmith Company received no business at Manteo, and practically 
none at Wanchese, was that it had never given the service to get the 



Decisions and Adjustments of Complaints 129 

business and that with its headquarters in Elizabeth City and its principal 
business that of delivering fuel within Elizabeth City, it was not prepared 
to furnish the service which Manteo and Wanchese demanded. 

It was further contended by the applicant that the GrifRn-Coppersmith 
Line could not reasonably be expected to provide the service which the 
public necessity and convenience demanded and that there was a pressing- 
need for the service which the applicant desired to provide. It was also 
further contended by the applicant that it now operates a regular daily 
service between Manteo-Wanchese and Norfolk, Virginia, passing by 
Sligo, which is not far from Elizabeth City, but that it could not satis- 
factorily handle any business for Elizabeth City over said line, due to 
the irregularity of the operations of the GrifRn-Coppersmith Line and the 
uncertainty of the connection with said line at Sligo. 

The law gives this Commission some discretion as to the granting of 
franchises over routes where franchises already exist, but it is the policy 
of this Commission not to grant a multiplicity of freight franchises over 
the same line, without giving to the existing franchise holders an op- 
portunity to provide proper service, unless the Commission is satisfied 
that ample service can not be expected from the existing operators. 

Upon a careful consideration of the facts in this case, the Commission 
has reached the conclusion that the very nature of the business at Manteo 
and Wanchese demands that there be an operator with its headquarters 
located at one of said towns, which are only a short distance apart, so 
that the services of the operator will, at all times, be available to the 
shippers on short notice, and that the public convenience and necessity 
will be served by granting an extension of the applicant's present fran- 
chise from Sligo to Elizabeth City. 

Wiii'.i'.EFOKE IT is oudered, That the present franchise of the Virginia Dare 
Transportation Company be amended so as to extend its freight franchise 
from Sligo to Elizabeth City, upon the condition that it handle no business 
from Sligo to Elizabeth City or from Elizabeth City to Sligo. 

This 7th day of August, 19 3 5. 

By order of the Commissioner: Stanley Winbokne, 

(Signed) R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 328. 

IN RE: PETITION VIRGINIA STAGE LINES INCORPORATED TO 
OPERATE FROM N. C.-VA. STATE LINE VIA ROUTE 14 AND 62 TO 
HAW RIVER, THENCE ROUTE 10 ON NORTH SIDE OF SOUTHERN 
RAILWAY TO BURLINGTON 

Order 

The above petition was filed with the Commission on October 18, 1934, 
and set for hearing on Friday, December 7, 19 3 4, at ten o'clock a.m. in 
the ofRce of the Commissioner at Raleigh, North Carolina. Before hear- 
ing, the date of said hearing was advertised in the press of the State 
in accordance with law. 

At the hearing the Atlantic Greyhound Lines appeared in objection 
to the granting of said petition because of the fact that the petitioner's 



130 ^N". C. Utilities Commission 

operation out of Danville probably deprived it of some little business which 
may have been delivered to it by the petitioner in the past. 

The Carolina Coach Company appeared at the hearing and stated that 
11 had no objection to the petitioner operating to Burlington to connect 
with its line, but would object to extending said line to Greensboro or 
elsewhere. 

Mr. Gilley, a small operator between Reidsville and Burlington, ap- 
peared after the hearing and asked that the record show that he appeared 
for the reason that he had been getting some business for Burlington, 
delivered to him by the Greyhound at Reidsville out of Danville, but Mr. 
Gilley is a small operator and has been a very intermittent operator in 
the locality which he serves, therefore, it is doubtful whether the business 
which he has been getting from that source indirectly is sufficient to 
affect his operation in any appreciable manner. 

The petitioner is owner of the franchise which runs out of Danville to 
Yanceyville and to Durham, but has leased that operation with the privi- 
lege of operating over the leased line from Danville to Yanceyville, there- 
fore, the granting of this petition is adding little to the privilege which 
the petitioner already enjoys, for the reason that business that he could 
not bring down in his own buses could be delivered to his lessee which in 
turn would be delivered to Durham only thirty-three miles further east 
than Burlington. The fact that Greensboro is now served by two lines 
and Durham by three lines, all with northern connections, I cannot see 
how this operation can do much more than provide a more ready and 
direct route north for passengers originating in Burlington. The element 
of competition because of this extension in very remote, if such could 
possibly exist at any point, 

Therefore, it is ordered. That the petition be granted and that certificate 
be issued covering that portion of the route on 62 between Prospect Hill 
and Haw River, and the highway from Haw River to Burlington on the 
north side of the Southern Railway track, known as Highway No. 10, 
with no privilege to pick up passengers for transportation between Haw 
River and Burlington in either direction. 

And it is further ordered. That, when the petitioner otherwise complies 
with the Statute by filing insurance and equipment specifications for the 
purchase of tags, certificate shall issue. 

And it is fi:rther ordered. That this certificate be granted with the direct 
understanding that the Petitioner will not attempt to run over any other 
route or routes in this State except by, and with, the permission of this 
Commission and that any attempt so to do without such permission will void 
the permission granted under this Order. 

By order of the Commission. 

This 12th day of January^ 1935. Stanley Winborne, 

Docket No. 228 Utilities Commissioner. 



Decisions and Adjustments of Complaints 131 

APPLICATION OF WADE WHITTINGTON, NORTH WILKESBORO, N. 
C, FOR FRANCHISE CERTIFICATE TO OPERATE MOTOR VE- 
HICLES FOR TRANSPORTING FREIGHT BETWEEN NORTH 
WILKESBORO AND BOONE, WEST JEFFERSON AND JEFFERSON, 
MAKING DAILY ROUND TRIPS 

Order 
Application for franchise certificate to operate motor vehicles for trans- 
porting freight over Highway No. 60 from North Wilkesboro to Boone, 
thence over No. 2 21 to West Jefferson and Jefferson, and thence on No. 
16 to North Wilkesboro, making daily round trips, having been filed by 
Vvade Whittington, North Wilkesboro, hearing on said application was 
held April 9, 1935, at the office of the Commission, after proper publica- 
tion of notice of hearing had been made by the applicant. 

Petitioner appeared in person. The record of the Commission showing 
no objection to this application and no opposition appearing at the hearing, 
and it appearing to the Commission that the law has been complied with 
in every respect, it is 

Ordered. That franchise certificate be granted to Wade Whittington, to op- 
erate over route as set out in application. 
This 9th day of April, 193 5. 
Docket No. 332. Stanley Winborne, 

Utilities Commissioner. 

IN RE: WILMINGTON BUS COMPANY, INCORPORATED 

Order 
This is the application of the Wilmington Bus Company, Incorporated, 
to remove certain limitations from its bus franchise between Wilmington 
and Kures Beach. 

Mr. A. A. Brandon, owner of the Wilmington Bus Company, has been 
operating this line under Franchise No. 39 5 since October 2, 19 3 3, but 
has not been operating out of the bus station in Wilmington. This being 
a short line the Commission had not required him to go into the station 
and the fact that connection was not made there the Commission has 
previously given other bus operators into Wilmington the right to extend 
any run to Carolina and Kures Beaches during the summer season when 
the hotels are open in order to serve their passengers. 

It developed at the hearing that the other bus lines operating into 
Wilmington did not care to extend their operations to Carolina and Kures 
Beaches, provided the Wilmington Bus Company, Incorporated, could op- 
erate out of the station making connection with their schedules. The 
petitioner in this case has been of the opinion that this would be pro- 
hibited by Mr. Love, President of the Queen City Coach Company, made 
a proposition whereby the Wilmington Bus Company, Incorporated, could 
pay $20.00 a month for the months of June, July, August and September 
and that he would withdraw opposition to the application and would co- 
operate with the Wilmington Bus Company, Incorporated, provided it 



132 ][^. C. Utilities Commission 

would make connection at the station with, his schedules; therefore, it is 
Ordered, That the petition be granted and that Franchise Certificate No. 
39 5 shall be amended so as to show that the Wilmington Bus Company 
is now a corporation and remove the provision in said franchise which 
would limit the operation between Wilmington and Kures Beach and that 
the petitioner be required to use the bus station from June 1, to Septem- 
ber 30, of each year by paying the sum of $20.00 a month to the bus 
station agent for the use of the bus station during its period of operation. 
By order of the Commission: 

Attest: R. O. Self, Chief Clerk. Stanley Winborne, 

This July 8, 1935. Utilities Commissioner. 

Docket No. 314. 

IN RE: PETITION OF M. J. CORBETT, RECEIVER FOR WILMINGTON, 
BRUNSWICK AND SOUTHERN RAILWAY COMPANY, PETITIONING 
FOR MOTOR VEHICLE FRANCHISE TO TRANSPORT EXPRESS AND 
FREIGHT BETWEEN SOUTHPORT AND WILMINGTON VIA NAVASSA. 

Order 

This matter came before the Commission upon the petition of the receiver 
of the Wilmington, Brunswick and Southern Railway Company for a motor 
vehicle franchise for the transportation of freight and express to supplement 
the railroad service between Southport and Navassa and to extend the said 
motor vehicle service into Wilmington. The Commission heard this case on 
Tuesday, September 24, 1935, at which time the P. and F. Motor Express ap- 
peared asking that it be permitted to go into Southport from Supply where 
it now has a franchise. 

Inasmuch as the evidence showed that the public convenience and neces- 
sity demanded that the railroad give some additional service but that the 
financial condition of the petitioner is such that it is not able to do so by 
rail, it is thought that the supplementary service by motor vehicle will solve 
the problem confronting the receivers, but simultaneously with granting this 
petition the Commission will amend the certificate of the P. and F. Motor 
Express so as to permit it to go into Southport with shipments originating 
wcot of Supply and west and north of Navassa and to carry shipments out 
of Southport for points west, north and south of Supply and Navassa by 
truck. 

Therefore, it is ordered. That the petition be granted and that when the 
petitioner, the receiver for the Wilmington, Brunswick and Southern Rail- 
way Company, complies with the law by filing insurance and specifications 
of motor vehicles in accordance with the law and the rules and regulations 
of the Commission, that certificate be issued granting franchise from South- 
port over Route 30 to the intersection of Route 303, thence over 303 to the 
intersection of Highway Route No. 30 south of Town Creek, thence over 
Route 30 to the intersection of Route 20 at Navassa, thence into Wilmington 
over Route 20. 

This December 23. 1935. . Stanley Winijorne, 

By order of the Utilities Commission: Utilities Commissioner. 

(S) R. O. Self, Chief Clerk. 

Docket No. 532. 



Decisions and Adjustments of Complaints 133 

IN RE: PETITION OF E. 0. WOODIE FOR LICENSE CERTIFICATE FOR 
OPERATION OF MOTOR VEHICLE PASSENGER CARRIER OVER 
STATE HIGHWAY NO 18 FROM LENOIR TO SHELBY VIA MORGAN- 
TON. 

IN RE: PETITION OF QUEEN CITY COACH COMPANY, INC., FOR LI- 
CENSE CERTIFICATE FOR OPERATION OF MOTOR VEHICLE PAS- 
SENGER CARRIER OVER STATE HIGHWAY NO. 18 FROM MORGAN- 
TON TO LENOIR, VIA HARTLAND. 

Order 

The above entitled matter came on for hearing before Stanley Winborne, 
Chairman, and Frank W. Hanft, Associate Commissioner, in the hearing 
room of the Commission in the City of Raleigh, January 14, 1938. 

Attorney for petitioner, E. 0. Woodie — H. G. Hudson, Winston-Salem. 
Attorney for Queen City Coach Company — -L. P. McLendon, Greensboro. 
Opinion by Hanft, Associate Commissioner. 

The Queen C'ty Coach Company appeared in opposition to the above ap- 
plication of E. 0. Woodie, to the extent that a certificate was sought to op- 
erate between Lenoir and Morganton. From the evidence it appears that 
prior to October 10, 1933, the applicant, E. O. Woodie, conferred with the 
Chief Clerk of this Commission, Mr. R. O. Self, and that Mr. Self suggested 
that Mr. Woodie establish bus service between Morganton and Lenoir, no 
such service then being in existence. On October 10, 1933, Mr. Woodie ap- 
plied to the Commission for certain additions to his franchises, but did not 
ask for any franchise between Morganton and Lenoir. He was, however, 
considering the advisability of establishing service between those po nts, 
and on October 20, 1933, he began such service. He neither applied for a 
certificate nor notified the Commission that the operation had been begun. 
Instead he relied for his authority to operate the l.ne on the suggestion of 
Mr. Self that he so operate. At that time there was no question of rival ap- 
plicants for permission to operate; the difficulty lay in inducing anyone at 
all to render the service. Mr. Woodie continued to operate between Lenoir 
and Morganton from October 20, 1933, until late in October, 1935, when he 
discontinued on instructions from this Commission issued by reason of facts 
hereinafter set forth. 

Some time prior to May 11, 1934, the Queen City Coach Company, herein- 
after referred to as the Coach Company, applied to the Commission for a 
franchise to operate buses between Lenoir and Morganton. Inspection of its 
records by the Commission disclosed no existing certificate between those 
points, for the reason, already stated, that Mr. Woodie had not applied for 
any certificate. At the time of its application the Coach Company did not 
disclose to the Commission that Mr. Woodie was already operating bus serv- 
ice over the route. Had the Coach Company made such a disclosure, Mr. 
Woodie would doubtless have been given an opportunity to appear in opposi- 
tion to a franchise to the Coach Company, and to apply for a franchise to 
himself. Mr. Woodie's evidence is vague as to whether the Coach Company 
knew of his operations at tJie time it made its application. The Coach Com- 
pany's evidence is that it had no such knowledge. The Commission, not be- 



134 ^N". C. Utilities Commission 

ing advised of Woodie's operations, on May 11, 1934, issued a franchise to 
the Coach Company to operate between Lenoir and Morganton. 

However, the Coach Company did not commence operations until October 
15, 1935, for the reason that the highway between Lenoir and Morganton was 
under construction. There is some evidence that the Commission acquiesced 
in the delay, and that the Commission advised the Coach Company during 
the delay that its certificate was good. About October 15, 1935, the Coach 
Company obtained permission to commence operations and did so. Shortly 
thereafter Mr. Woodie, on instructions from the Commission, ceased opera- 
tions. The service rendered by the Coach Company since that time appears 
to be satisfactory. On the other hand, the service rendered by Mr. Woodie 
prior to that time likewise appears satisfactory, especially in view of light 
traffic and the difficulties of operation due to highway conditions. 

The above facts present first the question of the status of Mr. Woodie as 
an applicant for a certificate over the route where he already had operated 
for some years. Mr, Woodie's operations without a certificate from this Com- 
mission were in violation of law. N. C. CODE ANN. (Michie, 1935) sec. 2613 
(1). Such operations wilfully conducted amount to a misdemeanor, punish- 
able by fine or imprisonment or both. N. C. CODE ANN. (Michie, 1935) sec. 
2613 (y). Commissions have held that deliberately operating without a cer- 
tificate knowing that one is required constitutes a reason for denying a cer- 
tificate when one is applied for. Re: Carson-Tahoe Trans. Co. (Cal. R. R. 
Com., 1923) P. U. R. 1923 D 531; Re: Weir (Mont. Bd. of R. R. Com'rs. 1925) 
P. U. R. 1926 B. 355. On the other hand, where an operation without author- 
ity was conducted in good faith and in ignorance of the fact that the law 
had not been complied with, and where the operator on discovering his error 
made prompt application to the Commission, a certificate was granted. Re: 
Odgers (Ariz. Corp. Com., 1924) P. U. R. 1924 E 195. Likewise where a bus 
company operated for some years, built up a large business, and had much 
valuable equipment, but was probably in technical violation of law, appar- 
ently by reason of unauthorized changes in route brought on by detours, a 
certificate was granted as against another applicant less qualified. The dis- 
regard of law was not wilful. Re: Schlageter (Cal. R. R. Com. 1923) P. U. R. 
1923 D 158. In the case before us apparently Mr. Woodie established service 
between Lenoir and Morganton in good faith, relying on the fact that Mr. 
Self, acting for the Commission, wanted the service established. While we 
by no means approve of his laxity in failing to obtain a certificate, still his 
operation on this route, in good faith, at a time when road conditions made 
service difficult, are sufficient to give him strong equities as against a later 
applicant, each being able to render service suitable to the public needs. 

This case is complicated, however, by the fact that the Commission ac- 
tually issued a certificate to a later applicant, the Coach Company. But the 
Coach Company in its turn failed to comply with the law of the State, with 
the result that its certificate has become void. N. C. CODE ANN. (Michie, 
1931) sec. 2613 (s) provides: "(a) That franchise certificates issued under 
this act shall become null and void for the following causes: 

"(3) For failure to begin operation within thirty days after the issuance 
of certificate." 

Attorney for the Coach Company contends that the statute should be con- 



Decisions and Adjustments of Complaints 135 

strued in such fashion as to authorize the Commission to consent to the 
failure to operate thus curing tlie failure. The statute permits no such con- 
struction. Paragraph (2) of the section, relating to the loss of certificates 
for abandonment of operation for thirty days, expressly states the qualifica- 
tion, "without the written consent of the commission." Paragraph (3), 
above set out, omits any such qualification. The fact that paragraph (2) con- 
tains the qualification, and the very next paragraph does not, negatives any 
intention of the legislature to imply the qualification. If they had intended 
such an implication there would have been no need for making the qualifi- 
cation express in paragraph (2). Further sub-section (b), immediately fol- 
lowing paragraph (3), makes the ca*ncellations therein provided for subject 
to "the discretion of the commission." Thus the significance of the omission 
of any qualification as to commission consent or discretion in paragraph (3) 
becomes more significant still. Furthermore, there is a perfectly logical rea- 
son for making certificates absolutely void for failure to begin operation 
within thirty days. It prevents the acquisition of rights in the highways to 
the exclusion of other applicants long before the service is to be rendered. 
We think that in paragraph (3) the legislature intended to say precisely 
what it did say, for the purpose just mentioned. Under the language of par- 
agraph (3) the certificate of the Coach Company is void. Its operations now 
are as illegal as Mr. Woodie's were. 

Since the hearing in this case the Coach Company has filed its application 
for a certificate between Morganton and Lenoir, to be considered, by consent, 
as having been made January 14, 1936, the date of the hearing. Accordingly, 
E. 0. Woodie and the Coach Company are each now before us seeking a cer- 
tificate between Lenoir and Morganton. 

In some respects the positions of the two applicants are similar. Each 
was lax and failed to comply with the law. Apparently, in neither case was 
the failure deliberate. Each is able to render service adequate to the public 
needs. However. Mr. Woodie's position is fortified by the fact that he was 
first in the field, and built up this line. He served when before there was no 
service. He took the risk that the line would prove unprofitable. He gave 
service when road conditions were bad. When the Coach Company applied 
for a certificate it did not reveal to the Commission the presence of Mr. 
Woodie already operating on the line. It may not have known of such opera- 
tion. However, after it obtained its certificate it repeatedly recognized Mr. 
Woodie's operations before it began its own service. The evidence on this 
point is in conflict, but the heavy preponderance of the evidence shows that 
the Coach Company recognized the Woodie operations. It made connections 
with him at Morganton. It honored his tickets for passengers arriving at 
Morganton over the Lenoir-Morganton line traveling to points on its lines. It 
sold tickets to points on Woodie's lines on or beyond the Lenoir-Morganton 
line. It did not inform him that it had a certificate between Lenoir and Mor- 
ganton, Apparently it was content to let him keep alive the business over 
this line until it was in a position to operate. These facts weaken the posi- 
tion of the Coach Company. 

It is conceded by both parties that the public convenience and necessity 
requires the service between Lenoir and Morganton, and the Commission so 
finds. No opposition has been made to that portion of the proposed opera- 



136 N. C. Utilities Commission 

tions of E. 0. Woodie which extend from Morganton to Shelby. The Com- 
mission finds tliat the public convenience and necessity justify such proposed 
operations; therefore, it is 

Okdeked, That the application of E. O. Woodie herein is in all respects 
granted, and that a License Certificate issue accordingly. 

It is further ordered, That the application of the Queen City Coach Com- 
pany, Inc., herein is in all respects denied. 
This 21st day of April, 1936. 

Stanley Winborne, 
By order of the Commission: Utilities Commissioner. 

Frank W. Hanft, 
R. O. Self, Cliief Clerk. Associate Commissioner. 

Docket No. 567. 

IN RE: PETITION E. O. WOODIE FOR MOTOR VEHICLE FRANCHISE 
TO OPERATE BUS ON HIGHW^AYS 67 AND 268 BETWEEN WINSTON- 
SALEM AND NORTH WILKESBORO, VIA ELKIN, EAST BEND BOONE- 
VILLE, RONDA AND ROARING RIVER. 

Order 

This matter came before the Commission on the application of Mr. Woodie 
for a franchise as above stated. The matter was set for hearing, originally, 
on Tuesday, December 10, 1935, and postponed from time to time, and heard 
on January 14, 1936, before Commissioner Winborne and Associate Commis- 
sioner Hanft. 

No opposition appeared at the hearing and those carriers on whom notice 
had been served w^ere appearing at another case and were present in the 
courtroom at the time of this hearing, and stated to the court that they had 
no objection to the granting of said franchise. (See transcript of record in 
Docket No. 567, application of E. O. Woodie for franchise on Route 18 be- 
tween Lenoir and Shelby via Morganton.) 

It was announced by the Chairman in open hearing that this petition was 
granted; therefore. 

It is ordered. That the application be and is hereby granted, subject to 
compliance with other provisions of the law with reference to filing specifi- 
cations of equipment and insurance for authority to purchase tags to oper- 
ate said line; and. 

It is further ordered. That when such compliance is made as provided in 
the preceding paragraph Certificate No. 378 shall be amended to include 
Highways 67 and 268 from Winston-Salem to North Wilkesboro via Elkin 
and other points as above stated. 

This 27th day of April, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Cleric. Utilities Commissioner. 

Docket No. 570. 



Decisions and Adjustments of Complaints 137 

IN RE: PETITION OF E. 0. WOODIE FOR LICENSE CERTIFICATE FOR 
OPERATION OF MOTOR VEHICLE PASSENGER CARRIER FROM WEST 
JEFFERSON TO CHARLOTTE, N. C, VIA STATE HIGHWAY NO. 16 
THROUGH NORTH WILKESBORO, TAYLORSVILLE AND CONOVER 
TO NEWTON, THENCE ON STATE HIGHWAY NO. 73 TO DENVER; 
THENCE ON STATE HIGHWAY NO. 271 TO CHARLOTTE. 

Order 

The above entitled matter came on for hearing before Stanley Winborne. 
Chairman, and Frank W, Hanft, Associate Commissioner, in the hearing 
room of the Commission in the City of Raleigh, January 14, 1936. 

Attorney for petitioner, E. 0. Woodie — H. G. Hudson, Winston-Salem, 
Attorney for Queen City Coach Company — L. P. McLendon, Greensboro. 
Opinion by Hanft, Associate Commissioner. 

The Queen City Coach Company, hereinafter called the Coach Company, ap- 
peared in opposition to the above application to the extent that a certificate 
was sought to operate between Conover and Charlotte via Newton, Denver 
and Lowesville. From the evidence it appears that from West Jefferson 
through North Wilkesboro and Taylorsville to Conover the proposed line 
would not duplicate any other. From Conover to Newton it would run over 
the route of the Coach Company; from Newton it would diverge from the 
route of the Coach Company to a maximum distance apart of fifteen miles; 
and at a junction just outside Charlotte the two routes would again come 
together. From West Jefferson to Charlotte, the entire length of the pro- 
posed route, the distance is 115 miles. From Conover to Charlotte the dis- 
tance is about fifty miles. 

Some testimony was received from persons along the proposed route be- 
tween Newton and Charlotte to the effect that the new service would be de- 
sirable. There is no service over that route at the present time. The Com- 
mission has received letters from persons residing from West Jefferson to 
Charlotte, inclusive, favoring the proposed service. It has likewise received 
resolutions from citizens of Conover and Newton to the effect that the exist- 
ing service between those towns and Charlotte provided by the Coach Com- 
pany is adequate, and that no further service is needed. This sort of evi- 
dence has little value. Re: Red Star Line, Inc. (Md. Pub. Serv. Cora., 1926) 
P. U. R. 1927, B 145. The Commission said, in deciding that case: "Much of 
the testimony taken in the recent hearing tended to show that a considerable 
number of persons believed the intra-state service proposed to be given . . . 
would be desirable, although few, if any of them, indicated with any degree 
of definiteness the extent to which they would use it, if they would use it at 
all. This, however, did not establish that the service was necessary to the 
public welfare and convenience." 

Quoting from Eager vs. Pub. Util. Com., 113 Ohio St., 604, 149 N. E. 865, 
the Commission sa^d: "'The public convenience and necessity, or lack there- 
of, is established by proof of the conditions existing in the territory to be 
served, and it is the function of the Commission to draw its own conclusion 
and form its own opinion from the proof of the conditions in the territory. 



138 ]^. C. Utilities Commission 

rather than from the concensus of opinions of witnesses upon the ultimate 
fact as to the existence or non-existence of tlie public necessity and con- 
venience.' " 

Quoting State, etc. vs. Toledo. St. L. & W. R. Co., 286 111. 582, 122 N. E. 158, 
it was said: "'The existence of a public necessity or convenience is not nec- 
essarily determined by the number of people asking for it. The convenience 
or necessity must concern the public, as distinguished from the individual 
or any number of individuals.' " 

In order to justify bus service there must be in prospect a sufficient num- 
ber of users of the service to pay for it. To bring before the commission 
a small number of persons to testify that they would use the service occa- 
sionally, and that they believe others would, proves little. Such evidence is 
scarcely a substitute for definite testimony as to the probable number of new 
customers the new line would produce as a means of paying its cost. 

The Commission has, since the hearing in this case, received a number 
of letters urging the establishing of the proposed service. When such com- 
munications have any bearing on the merits of the matter in controversy 
before the Commission they should be presented at the hearing so that the 
opposing party may present his opposition. When such communications have 
no bearing on the merits of the matter in controversy they should not be 
sent at all. Trials before this Commission involving extensive interests of 
opposing parties should be had strictly on the evidence. One item of evi- 
dence in cases of this kind, it is true, is public demand for the service. Let 
that evidence be presented before the Commission at the hearings. Other- 
wise it loses its character as evidence, and becomes external persuasion, pub- 
lic clamor, or pressure. These latter should have no place in determining 
the rights of parties before a tribunal such as this Commission. 

The Commission, as above stated, must draw its own conclusion as to the 
need for the proposed service. The prospective demand arising along the 
proposed route from Newton to Charlotte, exclusive of those cities, plainly 
would not justify the service. Over this distance of about forty miles there 
is the town of Denver, with a population of 350, and a couple of much smaller 
places. A witness experienced in such matters, Mr. Kindley, traffic manager 
of the Coach Company, testified that this local traffic would pay a maximum 
of 2 cents per bus mile. Mr. Love, General Manager of the Coach Company, 
testified that the average cost of service per bus mile of the various bus com- 
panies operating in the State runs from 14 cents to 20 cents. Obviously, 
then, the local traffic on this line could not possibly justify the service. Pas- 
sengers obtained for trips between Conover, Newton and Charlotte would 
be obtained at the expense of the existing operator, the Coach Company. 

This Commission has hitherto refused to allow a bus company to render 
service duplicating that of an existing bus company save for certain local 
traffic inadequate to pay expenses. Atlantic Greyhound Lines vs. Carolina 
Coach Company, order of July 31, 1935. We are not inclined to depart from 
the position taken in that decision. Experience in public utility regulation 
throughout the country has proved that it is desirable to grant a single util- 
ity the right to serve given territory, rather than to allow others to come in 
and compete. If there are several companies, with several offices, several 
sets of equipment, several sets of officers, etc., rates must be set higher to 
enable each to earn a fair return than would be necessary to enable a single 



Decisions and Adjustments of Complaints 139 

company operating in the territory to earn a fair return. Moreover, when 
a single bus company is assured that so long as it renders adequate service, 
affords reasonable rates, and complies with the requirements made by the 
Commission in behalf of the public, it will be protected in the exclusive en- 
joyment of its franchises, then that company will feel safe in making an 
extensive investment in high-class equipment. The days when numerous 
competitors in motor bus transportation were welcomed on the highways 
were days when rattletraps operated by irresponsible drivers were offered at 
cut-throat rates to lure business from those concerns whose adequate equip- 
ment and competent operators made their operations more expensive. The 
country as a whole has moved beyond those conditions by a policy of grant- 
ing exclusive franchises. As a result the lowest rates consistent with mod- 
ern service are made possible by the elimination of duplicating facilities, and 
the possibility of low rates is translated into a reality by the compulsion of 
public regulation. For these reasons it is well established that ordinarily 
an additional carrier will not be granted a franchise over a route already 
adequately served. Re: Detroit-Chicago Motor Bus Company, Inc. (Mo. Pub. 
Serv. Com., 1928) P. U. R. 1928, C. 102. The Commission in its opinion said: 
"It is the policy of this Commission to prevent harmful competition among 
public utilities and to avoid a duplication of service, for the reason that it 
is more expensive for the public to maintain several utilities, each one hav- 
ing a right to earn a reasonable return upon the money invested, than it is 
to have only enough to properly serve the needs of the public." 

A thorough discussion of the subject of certificates of convenience and 
necessity is to be found in Hall, Certificates of Convenience and Necessity 
(1929 and 1930) 28 Mich. Law Review 107 and 276. The author states that 
it is the general rule that a Commission will not allow a second utility to 
enter a field if it is already occupied by another, and the latter is giving 
satisfactory service. 

It is true that in this case the proposed line would duplicate the existing 
lines of the Coach Company only in part. However, from the standpoint of 
the public, such a duplication may be less desirable than complete duplica- 
tion. A new service along part of the line of an existing carrier may deprive 
the latter of sufficient business to wipe out its profit. The result may be to 
force the existing carrier out of business, leaving all the rest of its terri- 
tory without any service. We anticipate no such result if the applicant here 
were permitted to put on the duplicate service. But to the extent that the 
Coach Company would be weakened by the loss, its ability to serve in the 
remainder of its territory would be weakened. 

The case before us strongly resembles Superior Motor Bus Co. vs. Com- 
munity Motor Bus Co., 320 111. 175, 150 N. E. 658 (1926). There the applicant 
desired to operate between two towns over a route already served by con- 
testant, and thence on to additional towns. The Commission granted a 
certificate to applicant. The court held that the Commission had erred. It 
said: "The evidence in the case showing that appellant had been meeting 
all the requirements of the public and of the Commission between Belleville 
and Mascoutah, and that it was ready, able, and willing to render efficient 
service to the public, and it being conceded by all parties that there was not 
sufficient traffic over this route to justify the operation of two motor bus 



140 ]^. C. Utilities Commission 

lines, the action of the Commission in granting a certificate of convenience 
and necessity to appellee was in violation of the rules laid down in the au- 
thorities cited, and was unreasonable, arbitrary and confiscatory." 

It is true that in the case just referred to the applicant proposed to run 
over the same route already served by contestant between Belleville and Mas- 
coutah, whereas in the case before us the applicant, Woodie, proposes to 
operate between Conover and Charlotte partly over a new route. But when 
it is considered that, as above pointed out, the local traffic on the new route 
would be far short of paying for the service, the difference between the two 
cases is not material. 

The difference in the mileage from Taylorsville to Charlotte either through 
Newton or Statesville is negligible. Highway Commission map mileage is 
in favor of the Statesville route over an all paved road. 

For the above reasons the certificate to operate betw^een Conover and Char- 
lotte will be denied. We do not believe that this denial will deprive the 
citizens of West Jefferson of adequate bus transportation to Charlotte. Bus 
service already exists from West Jefferson via Boone, Hickory, Conover, and 
Newton to Charlotte. Present schedules, according to the evidence, permit 
leaving Boone at 8:25 a. m., spending four hours and forty-five minutes in 
Charlotte, and arriving back at Boone at 9:05 p. m. 'If Mr. Woodie believes 
that there is any substantial need for a West Jefferson-Charlotte one-day 
round-trip service let him connect with those schedules at Boone. He runs 
from West Jefferson to Boone. Perhaps such a connection might not be con- 
venient to him, by reason of the necessity for making other connections on 
the same run. Connections commonly present a difficult problem. On a sin- 
gle trip bus X may cross other bus routes at three points, call those points 

A, B and C. If a bus on a cross route reaches A at 9:00 a. m. another bus on 
another cross route reaches B at 10:00, and another bus on a third cross 
route reaches C at 11:00, and it takes X bus two hours to travel from A to 

B, and two hours from B to C, it is obvious X can make connections with 
only one of the cross route buses. That fact, however, does not justify op- 
erator of X bus in asking for permission to operate his own buses over the 
other two cross routes in order to give his customers direct service to points 
on those cross routes. 

North Wilkesboro likewise has service to and from Charlotte via Brooks 
Crossroads and Statesville. 

It may be that traffic prospects now do or in the future will justify the 
proposed service from West Jefferson via North Wilkesboro, Moravian Falls 
and Taylorsville to Conover, there to connect for Charlotte with the Coach 
Company. Such service has not been proposed by the applicant, although 
it would furnish the same outlet for West Jefferson, North Wilkesboro, Mora- 
vian Falls and Taylorsville to Charlotte as the proposal made, without in- 
jury to the Coach Company. It would to some slight extent compete with 
E. T. & W. B. C. Motor Transportation Company, but that competition would 
be minor compared with the duplication the present proposal would make 



Decisions and Adjustments of Complaints 141 

of Coach Company service. At any rate we shall pass on such an applica- 
tion when made; therefore, it is 

Ordered, That the application of E. 0. Woodie herein is denied. 

This 22d day of April, 1936. 

Stanley Winborne, 
By order of the Commission : Utilities Commissioner. 

F. W. Hanft, 
R. 0. Self, Chief Clerk. Associate Commissioner. 

Docket No. 591. 

Mrs. Marianna Cobb Gareissen vs. Atlantic Greyhound Lines. ' Com- 
plaint of crowded condition of bus between Goldsboro and Raleigh. 
Adjusted. Docket No. 408. 

Atlantic Greyhound Lines to the Commission. Petition for order to 
Royal Blue Transportation Company and L. F. Barnard, President, in re- 
moval of limitation on franchise certificate No. 39 7. Certificate of satis- 
faction given. Docket No. 472. 

Blue Eagle Bus Line to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Rockingham to Hamlet 
over county road known as "Old Hamlet Road," Dismissed. Docket 
No. 317. 

Robert B. Brown to the Commission. Application for franchise certifi- 
cate to operate as motor vehicle carrier from Norlina to Murfreesboro, 
connecting at Norlina with Atlantic Greyhound Lines. Application aban- 
doned. Docket No. 553. 

D. W. Buchanan to the Commission. Application for franchise cer- 
tificate to operate as motor vehicle carrier from Marion to Toecane, via 
Switzerland, Spruce Pine and Bakersville. Application abandoned. 
Docket No. 257. 

C. & T. Motor Express Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Statesville 
to Mount Airy, via Elkin and Fairview. Application withdrawn. Docket 
No. 8 37. 

Carolina Coach Company to the Commission. Rates on the Raleigh- 
Chapel Hill-Greensboro Division filed. Approved. Docket No. 6 7 6. 

Carolina Motor Express Lines to the Commission. Application for in- 
terstate tag to operate as motor vehicle carrier from Virginia-North 
Carolina State Line to Winston-Salem and on to Greensboro. Also Vir- 
ginia-North Carolina State Line to Mayodan and Greensboro. Authorized. 
Docket No. 4721/2. 

Carolina Rapid Transit Company, Inc., to the Commission. Application 
for motor vehicle franchise. Closed because of lapse of time. Docket 
No. 184. 

Carolina Scenic Coach Lines to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from North Carolina- 
South Carolina line through Lake Lure to Bats Cave and on to Hender- 
sonville. Application denied as to operation between Bats Cave and 
Hendersonville. Due to lapse of time, case closed. Docket No. 29 9. 



142 ^. C. Utilities Commission 

Carolina Stages, Inc., to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from the North Carolina- 
South Carolina State line near Fort Mill, S. C, to the Busta Boyd High- 
v/ay inco Charlotte. Dismissed for want of jurisdiction. Docket No. 501. 

Carrington and Jones Transfer Company to the Commission. Applica- 
tion for franchise certificate to operate as motor vehicle carrier from 
Washington, N. C, to Swan Quarter. Granted as to freight. Docket 
No. 2 3 9. 

Coastal Coach Lines, Inc., to the Commission. Application for authority 
for sale or transfer of franchise certificate to Norfolk Southern Bus Cor- 
poration. Granted. Docket No. 286. 

J. L, Copeland to the Commission. Application for franchise certifi- 
cate to operate as motor vehicle carrier to operate from Chapel Hill to 
Durham over route previously operated by Leigh and Durham. Transfer 
from Leigh and Durham to Copeland granted. Docket No. 717. 

Clarence L. Davis to the Commission. Application for franchise certifi- 
cate to operate bus from Murphy to Tennessee State Line, via Andrews, 
Topton, Robbinsville. Topoca, and to Knoxville, Tenn. Dismissed for 
want of jurisdiction. Docket No. 607. 

Dayton Brothers Bus Line, Inc., to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier for passengers 
from Cullowhee to Tennessee State Line, via Sylva, Dillsboro, Franklin, 
Hayesville and Murphy. Granted between Franklin and Tennessee State 
Line, and denied from Cullowhee to Sylva. Dillsboro and Franklin. 
Docket No. 42 6. 

J, B. Dunnegan to the Commission. Application for franchise certifi- 
cate to operate as motor vehicle carrier from Mount Airy to Winston- 
Salem. Dismissed. Docket No. 19 8. 

East Coast Stages to the Commission. Application for franchise cer- 
tificate to operate as motor vehicle carrier from Raleigh to Lexington- 
Closed. Docket No. 107. 

Farrar's Motor Express to the Commission. Application for authority 
to transfer to J. S. Caudill part of line from Statesville to North Wilkes- 
boro for express or freight. Granted. Docket No. 277. 

Frederickson Motor Express Corporation to the Commission. Applica- 
tion for franchise certificate to operate from Statesville to Taylorsville 
and on to North Wilkesboro. Withdrawn. Docket No. 855. 

Georgia Motor Express, Inc., to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Asheville, via 
Enka, Canton, Waynesville, Sylva, Dillsboro and Franklin to State Line. 
Stock purchased from Jack Rabbit Motor Express and certificate trans- 
ferred. Docket No. 639. 

Hensley Motor Express to the Commission. Application for franchise 
certificate to operate as motor vehicle carrier from Asheville to Hender- 
sonville and Brevard and return to Asheville over another route. With- 
drawn. Docket No. 791. 



Decisions and Adjustments of Complaints 143 

Jack Rabbit Motor Company. Claim of Graybar Electric Company, Inc. 
for damage to shipment. Dismissed as not within the jurisdiction of the 
Commission. Docket No. 114. 

D. D. Jones Transfer and Warehouse Company to the Commission. 
Application for authority to operate from N. C. State Line via Kinston 
to Como, Murfreesboro, Woodland, Rich Square, Scotland Neck, Tarboro, 
Bethel, Greenville, Ayden, Goldsboro, Fremont, Wilson, Rocky Mount, 
Battleboro, Whitakers, Enfield, Halifax, Weldon, Jackson, Conway, Como 
and return. Denied. Docket No. 3 62. 

W. J. Jordan to the Commission. Application for franchise certificate 
to operate as motor vehicle carrier for freight between Kinston and 
Wilmington. Granted. Docket No. 2 69. 

Lansing-Marion Bus Line to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier for passengers from 
Lansing to Warrensville, West Jefferson, Jefferson, Grassy Creek at Vir- 
ginia State Line. Closed. Docket No. 403. 

Leaksville-Danville Bus Line to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from Burlington to 
Lexington via Liberty and Asheboro. Adjusted. Docket No. 3 6. 

Lovette Transfer Company to the Commission. Application for fran- 
chise certificate to operate as motor vehicle carrier from North Wilkes- 
boro to Taylorsville, Newton, Lincolnton, and from Lincolnton to Bel- 
mont and to Charlotte. Denied. Docket No. 2 94. 

Marsh Transportation Company to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier on certain streets 
in Charlotte out to Airport Road, on to Thomasboro and back to City 
line. Withdrawn. Docket No. 35 8. 

Mason and Dixon Lines to the Commission. Application for franchise 
certificate to operate between Kingsport and Atlanta, via Asheville. Dis- 
missed for want of jurisdiction. Docket No. 6 34. 

Mountain Transit Corporation to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier from Virginia- 
North Carolina State line to Winston-Salem, via Sparta, Elkin, Yadkin- 
ville. Dismissed. Docket No. 256. 

National Convoy and Trucking Company to the Commission. Applica- 
tion for authority to transfer franchise from H. & L. Motor Company. 
Approved. Docket No. 176. 

National Convoy and Trucking Company to the Commission. Applica- 
tion for authority to extend franchise to operate from High Point to 
Greensboro for purpose of picking up freight south of Charlotte. Later 
amended to extend from High Point to Lexington and to Winston-Salem. 
Dismissed for want of jurisdiction. Docket No. 418. 

Neel Gap Bus Line to the Commission. Application for franchise cer- 
tificate to operate as motor vehicle carrier from Georgia State Line to 
Hayesville and Murphy and back to State Line. Dismissed for lack of 
jurisdiction. Docket No. 789. 



144 ]^. C. Utilities Commission 

New South Express Lines to the Commission. Application for author- 
ity to transfer license of Piedmont Coastal Motor Express. Approved. 
Docket No. 421. 

Norfolk Southern Bus Corporation to the Commission. Application for 
franchise certificate to operate as motor vehicle carrier for transporting 
passengers between Washington, N. C, and New Bern, via Frederick, 
Wilmar, Vanceboro, Ernul, Askon, Bridgeton. Granted. Docket No. 3 68. 

Norfolk Southern Bus Corporation to the Commission. Application for 
franchise certificate to operate from N. C.-Va. State Line to Cory's, Wood- 
ley's, Knotts Island, Knapp and vicinity, transporting freight. Granted. 
Docket No. 52 3. 

P. & F. Motor Express Company to the Commission. Application for 
franchise certificate to operate from Wilmington to Carolina Beach for 
transporting passengers. Denied. Docket No. 5 89. 

Pan-American Bus Line to the Commission. Application for interstate 
tag to operate through North Carolina (State Line to Charlotte and Win- 
ston-Salem) for transportation of passengers. Granted. Docket No. 4 59. 

Pierce and Formy Duval, Inc., to the Commission. Application for 
franchise certificate to operate from Shallotte to Southport. Granted. 
Docket No. 542. 

Pioneer Lines to the Commission. Application for franchise certificate 
to operate as motor vehicle carrier from Raleigh to Cary, Lexington, 
Pittsboro, Siler City, Ramseur and Asheboro; from Lexington to Salis- 
bury, with restrictions between Lexington and Salisbury. Dismissed. 
Docket No. 110. 

Queen City Coach Company to the Commission. Application for au- 
thority to operate over the National Park to Park Highway from Va.-N. 
C. State Line, via Asheville, through the Great Smoky Mountain National 
Park. Dismissed for want of jurisdiction. Docket No. 2 4 9. 

Queen City Coach Company to the Commission. Application for au- 
thority to transfer and purchase franchise rights of Wilmington Bus 
Company, operating between Wilmington and Kures Beach and Carolina 
Beach. Granted. Docket No. 609. 

Roanoke Island Transportation Company to the Commission. Applica- 
tion for franchise certificate to operate from Manteo-Wanchese-Roanoke 
Island-Sligo-Elizabeth City to Virginia State Line. Denied. Docket No. 
373. 

Sanlee Transit Line to the Commission. Application for franchise 
certificate to operate from Sanford to Jonesboio. Granted but franchise 
not completed. Docket No. 312. 

Salem Seivers to the Commission. Application for franchise certificate 
to operate bus over streets in Winston-Salem and on Walkertown Road 
to residence of applicant, for transporting employees in Winston-Salem. 
Dismissed. Docket No. 407. 

Smiths Transfer Company to the Commission. Application for fran- 
chise certificate to operate for transporting freight from Asheville to 
Murphy. Granted. Docket No. 331. 



Decisions and Adjustments of Complaints 145 

Smoky Mountain Stages, Inc., to the Commission. Application for 
franchise certificate to operate from Ranger to Georgia State Line. 
Granted. Docket No. 6 67. 

Spargo and Rhyne to the Commission. Application for franchise cer- 
tificate to operate between Salisbury and Lincolnton. Withdrawn. Docket 
No. 696. 

A. G. Sutton to the Commission. Application for franchise certificate 
to operate from Sylva to Dillsboro and Franklin. Dismissed. Docket 
No. 183. 

Tide Water Power Company to the Commission. Application for fran- 
chise certificate to operate for freight and passengers from Wilmington 
to Wrightsville Beach, and from City Limits of Wilmington over old 
Shell Road to Wrightsville Sound. Closed. Docket No. 377. 

Turner Motor Line, Inc., to the Commission. Application for franchise 
certificate to operate from Greensboro via Reidsville to N. C. State Line. 
Dismissed. Docket No. 703. 

University Freight Delivery Service to the Commission. Application 
for franchise certificate to operate from Chapel Hill to Durham. With- 
drawn. Docket No. 70 9. 

Virginia Dare Transportation Company to the Commission. Applica- 
tion for authority to discontinue passenger bus run from Manteo to Wan- 
chese. Granted. Docket No. 63 5. 

Virginia Southern Coach Lines to the Commission. Application for 
authority to change interstate franchise from Weldon to Virginia State 
Line to intrastate. Granted. Docket No. 559. 

Wilson Freight Forwarding Company to the Commission. Application 
for interstate tag to operate irregularly from Cincinnati to points in the 
State. Granted. Docket No. 602. 

C. B. Yates to the Commission. Application for franchise certificate to 
operate from North Wilkesboro, via Boone, Jefferson, for transportation 
of express. Granted. Docket No. 590. 

RAILROADS 

Rates, Charges, Rules and Regulations 

Acid, sulphuric, Charlotte to Burlington, N. C. Cancellation of com- 
modity rate account no movement. Application of Southern Freight 
Tariff Bureau. Approved. Docket No. 116. 

Boxes, fibreboard, pulpboard or strawboard. Protection of rate 14i^ 
cents from Duncan to Winston-Salem, N. C. Application of W. S. S. B. 
Railway Co. Approved. Docket No. 2 59. 

Brick, application of Southern Freight Tariff Bureau to cancel inter- 
mediate rule from Goldsboro to Greensboro via A. & N. C. and N. S. 
Railroads. Approved. Docket No. 516. 

Building materials, C. L., switching at Wilmington. Application of 
Atlantic Coast Line Railroad Co. provide charge of $11.00 per car, ac- 



146 ^. C. Utilities Commission 

count The Becker Coal and Builders Supply Co. Approved. Docket No. 
511. 

Building material, wood, C. L. Revision of rates. Application of 
Southern Freight Association. Disapproved. Docket No. 54 5. 

Canned goods, L. C. L. Application of Southern Freight Association 
to revise rates on. Approved. Docket No. 502. 

Cantaloupes, mushmelons, citrons or melons, N. O. I. B. N., C. L. 
Revision of rates on. Application of S. F. A. Approved. Docket No. 649. 

Cars, motor passenger, live under own power; also steam passenger 
cars, on own wheels, under own power. Revision of rates. Application 
of S. F. A. Approved. Docket No. 2 67. 

Class and commodity rates, regrouping of origins and destinations. 
Applications of Southern Freight Association. Approved. Docket No. 
455. 

Class and commodity rates, to and from Fuquay Springs, N. C. Revi- 
sion of, on same basis of Varina, N. C. Adjusted. Docket No. 3 55. 

Class and commodity proportional rates from and to Atlantic and 
Western Railway Stations, cancellation of. Application of Southern Rail- 
way Company. Approved. Docket No. 519. 

Classification ratings. Application of Agent E. H. Dulaney to revise 
on various commodities. Approved. Docket 762. 

Clay and kaolin, C. L., revision of rates. Application of Southern 
Freight Association. Approved. Docket No. 648. 

Coal, coke and coke breeze, C. L., removal of restriction against in 
connection with class rates. Approved. Docket No. 622. 

Commodities, rates on various. Cancellation account obsolete. Appli- 
cation of Atlantic Coast Line Railroad Co. Approved. Docket No. 116. 

Commodities, rates on various. Cancellation account obsolete. Ap- 
plication of Norfolk Southern Railroad Company. Approved. Docket 
No. 116. 

Commodity rates published in Roy Pope's F. T. No. 62 9-A. Applica- 
tion of Southern Freight Tariff Bureau to apply joint line rates in lieu 
of single line rates between stations on the A. & N. C. and N. S. Railroads. 
Withdrawn. Docket No. 74 4. 

Commodities, various; cancellation of rates from various N. C. points 
to Canton, Rockingham and Spray, N. C. Application of Southern Rail- 
way Company. Approved. Docket No. 116. 

Commodities, various, viz: sand, cotton, peanuts, fertilizer, and live 
poultry, cancellation of rates. Application of Virginia and Carolina 
Southern Railway Company. Approved. Docket No. 116. 

Cotton, transit rules governing truck competitive rules on. Applica- 
tion of Southern Freight Association. Approved. Docket No. 463. 

Cotton fabrics, unfinished, N. C. points to Rockingham, cancellation of 
special rates. Application of Southern Freight Tariff Bureau. Approved. 
Docket No. 116. 



Decisions and Adjustments of Complaints 147 

Cotton linters or re-gins. Application of Southern Freight Tariff Bu- 
reau to restrict application of cotton rates in tariffs 315-B and 3 50 so 
as not to apply on. Approved. Docket No. 751. 

Cottonseed, C. L. Application of Norfolk Southern Railroad Co. to 
cancel single line truck competitive rates from A. & N. C. stations to 
Charlotte, Raleigh and Wilson, withdrawn. Docket No. 744. 

Cottonseed, manufactured in transit. Extension of time limit of ex- 
pense bills covering. Application of Southern Freight Association. Ap- 
proved. Docket No. 575. 

Distances, between Newton and Hickory. Application of Carolina and 
Northwestern Railway Co. to eliminate from tariff. Approved. Docket 
No. 439. 

Distances. Application of Atlantic Coast Line Railroad Co. to revise 
rule governing method of disposing of fractions. Approved. Docket 
No. 327. 

Distances, between Gastonia and Shelby, N. C, revision of, account 
typographical error. Application of Southern Freight Tariff Bureau. 
Approved. Docket No. 4 8 5. 

Diversion and reconsignment, rules. Application of Atlantic Coast Line 
Railroad Company to revise. Approved. Docket No. 329. 

Diversion and reconsignment rules. Revision. Applications of South- 
ern Freight Tariff Bureau and Atlantic Coast Line Railroad Co. Approved. 
Docket No. 105. 

Emergency freight rates and charges. Application of Southern Freight 
Association to continue from July 1, 1936, to December 31, 1936. Denied. 
Docket No. 191. 

Emergency freight rates and charges. Application of Southern Freight 
Association to increase rates by same amounts authorized by the Inter- 
state Commerce Commission on interstate traffic in Ex Parte 115, to 
expire with June 30, 1936. Granted. Docket No. 191. 

Fertilizer and fertilizer materials, C. L., between Wilmington, Acme 
and Navassa, N. C. Revision of rates. Application of Atlantic Coast 
Line Railroad Co. Approved. Docket No. 512. 

Fish, oysters, and shrimp, C. L. & L. C. L. Revision of rates on. 
Application of Southern Freight Association. Approved. Docket No. 556, 

Fruits, vegetables and melons, loading and packing specifications in 
connection with. Application of Southern Freight Association. Approved. 
Docket No. 469. 

Furnaces and hollow ware. Application of Agent E. H. Dulaney to revise 
ratings. Approved. Docket No. 301. 

Gasoline and kerosene, revision of rates on, to meet truck competition. 
Application of Southern Freight Association. Approved. Docket No. 446. 

Gelatine, N.O.I.B.N., elimination from drug and medicine list. Ap- 
plication of Southern Freight Association. Approved. Docket No. 722. 

Grain and grain products, C.L. and L.C.L. Application of Agent E. H. 
Dulaney to revise ratings. Approved. Docket No. 741. 



148 K. C. Utilities Commission 

Grain and grain products. Application of Southern Freight Associa- 
tion, revise carload and less than carload rates. Approved. Docket 
No. 741. 

Graphite ore, or crude graphite, C.L. Revision of rates on. Applica- 
tion of Southern Freight Association. Approved. Docket No. 597. 

Groceries, LCL, viz.: Canned goods, syrup, cheese, flour, and rice. 
Cancellation of commodity rates from Washington and New Bern, N. C, 
to Elizabeth City. App. of N. S. R. R. Co. Approved. Docket 116. 

Ice, charges thereon in protective tariff. Application of National 
Perishable Freight Committee. Denied. Docket No. 793. 

Iron and steel, viz: bars, muck or puddle; bars sheet or tin plate; 
billets; blooms; ingots; salamander; slabs and wire rods, L.C.L. Appli- 
cation of Southern Freight Association to cancel commodity rates and 
apply class rates. Approved. Docket No. 647. 

Jelly, corn syrup, C.L., revision of rates on. Application of Southern 
Freight Association. Approved. Docket No. 539. 

Knitting Factory Products, revision of packing requirements or speci- 
fications. Application of Southern Freight Association. Approved. 
Docket No. 603. 

Less than carload and any quantity rates, substitution of highway 
vehicle service for rail service. Application Norfolk Southern Railroad. 
Approved to expire with June 1, 1936. Authority to extend until August 
28, 1936. Denied. Docket No. 730. 

Lignin Liquor, cancellation of rates from Canton, N. C. Application 
of Southern Railway Company. Approved. Docket No. 116. 

Loam soil, C.L., revision of rates. Application of Southern Freight 
Association. Approved. Docket No. 755. 

Locomotives and locomotives and tenders combined, on own wheels, 
under own power. Application of Southern Freight Association revise 
rates. Approved. Docket No. 250. 

Logs, billets, bolts, blocks, etc., C.L., restriction of truck competitive 
rates in connection therewith on foreign woods. Application of Southern 
Freight Association. Approved. Docket No. 447. 

Lumber, C.L. Application of Southern Freight Tariff Bureau and 
arbitraries for account of Graham County Railroad. Approved. Docket 
No. 792. 

Lumber, rule in connection with minimum weights on. Application 
of Southern Freight Association. Approved. Docket No. 435. 

Lumber and articles taking same rates, C.L., revision of arbitrary for 
account of Atlantic & Carolina Railroad. Approved. Docket No. 611. 

Lumber and forest products. Application of S. F. A. to provide 
minimum transit charge of $7.50 per outbound car. Approved. Docket 
No. 529. 

Marl, C.L., revision rates from points on A. C. L. Railroad, New Bern 
to Ravensford, inclusive, to North Carolina points, application of A. C. L. 



Decisions and Adjustments of Complaints 149 

Railroad Co., and from New Bern, application of Southern Freight Tariff 
Bureau. Approved. Docket No. 3 5 6. 

Marl, unground, C.L., revision of rates between points in N. C. Appli- 
cation of Southern Freight Tariff Board. Approved. Docket No. 3 5 6. 

Meats, fresh, and packing house products, revision of rates on. Appli- 
cation of Southern Freight Association. Approved. Docket No. 3 6 7. 

Metals, scrap, non-ferrous, C.L. Revision of rates. Application of 
Southern Freight Association. Approved. Docket No. 650. 

Mica and mica schist, C.L. Application of Southern Freight Associa- 
tion to revise rates. Approved. Docket No. 714. 

Milk or cream, C.L. Revision of rates. Application of Southern Freight 
Association. Approved. Docket 116. 

Millstones, C.L. Granite Quarry to North Wilkesboro. Revision of 
rates. Application of Southern Freight Association. Withdrawn. Docket 
No. 651. 

Molasses in wood, revision estimated weights on. Application of South- 
ern Freight Association. Approved. Docket No. 2 2 0. 

Oils, vegetable, transit rules on. Application of Southern Freight 
Association to extend life of expense bills for period of 12 months. 
Approved. Docket No. 4 89. 

Oyster shell dust, C.L., revision of rates. Application of Southern 
Freight Association. Approved. Docket No. 448. 

Petroleum and petroleum products, C.L., switching at Lillington, N. C. 
Application of Norfolk Southern Railroad Co. Withdrawn. Docket No. 
552. 

Piling, wooden, C.L., from Frederick, Hackney, Wilmar, Warren, For- 
est, Vanceboro and Cove, N. C, to Morehead City. Application of Norfolk 
Southern Railroad Co. to cancel truck competitive rates. Approved. 
Docket No. 569. 

Pimento juice. Application of Southern Freight Tariff Bureau to include 
in canned goods description. Approved. Docket No. 502. 

Plaster, plasterboard and related articles, C.L. Application of Southern 
Freight Association to revise rates. Approved. Docket No. 429. 

Rails and railway track materials, C.L. Application of Southern 
Freight Association to revise rates. Approved. Docket No. 386. 

Rails and railway track materials, L.C.L. Application of Southern 
Freight Association to revise rates. Approved. Docket No. 3 86. 

Rate bases, revision of, account typographical errors. Application of 
Southern Freight Tariff Bureau. Approved. Docket No. 4 8 5. 

River Terminal, N. C. Application of Southern Freight Tariff Bureau 
to add River Terminal, N. C, to tariffs. Approved. Docket No. 537. 

Road building materials, viz.: marble and granite, loose, C.L., from 
Neverson to Salisbury, and rubble or crushed stone, C.L., from Neverson 
to Durham, N. C. Cancellation of specific commodity rates. Application 
of Norfolk Southern Railroad Co. Approved. Docket No. 116. 



150 ^. C. Utilities Commission 

Salt and Salt Compounds, C.L. Application of Southern Freight Asso- 
ciation to revise rates. Approved. Docket No. 416. 

Salt with dry salt meats and for sweet pickled meats. Application of 
Southern Freight Tariff Bureau to revise rule in connection with. Ap- 
proved. Docket No. 367. 

Sand and gravel, C.L., Gravelton to Hamlet. Application of Seaboard 
Air Line Railway to cancel truck competitive rate. Approved. Docket 
No. 116. 

Sand, C.L. Gravelton to Gastonia, N. C. Cancellation of truck com- 
petitive rate. Application of Seaboard Air Line Railway. Approved. 
Docket No. 544. 

Sand, C.L. Waddill, N. C, to Nicanor and 31-Mile Siding. Cancella- 
tion of truck competitive rate. Application of Norfolk Southern Railroad 
Co. Approved. Docket No. 546. 

Sand, C.L., cancellation of special rate from Goldsboro to Nicanor, N. C. 
Application of Norfolk Southern Railroad Co. Approved. Docket No. 116. 

Sand, C.L. Application of Southern Freight Tariff Bureau to cancel 
intermediate rule on rate from Goldsboro to Dalton, King and Pinnacle 
via Atlantic Coast Line Railroad. Approved. Docket No. 646. 

Shovel, steam, Shawboro, N. C. to Belcross, N. C. Establishment of 
special rate for 15 days. Application of Norfolk Southern Railroad Co. 
Approved. Docket No. 558. 

Silk, raw, A.Q. Application of Southern Freight Tariff Bureau to can- 
cel. Approved. Docket No. 540. 

Soda, nitrate of, C.L. Switching at Rockingham, N. C, for account 
of E. G. Snipes. Complaint of Farmers' Cooperative Exchange. Dis- 
missed. Docket No. 688. 

Softener, cotton, rayon, silk or wool. Complaint of Charlotte Shippers 
and Manufacturers Association for reductions. Perfected. Docket No. 
385. 

Stopping in transit of cars to complete loading or to partially unload. 
Back haul. Application of Atlantic Coast Line Railroad Co. to revise 
rules governing. Approved. Docket No. 329. 

Sugar, maple. Revision of rates on. Application of Southern Freight 
Association. Approved. Docket No. 530. 

Tanning extracts and materials, C.L., from Wilmington, N. C. Cancel- 
lation of rates account being obsolete. Application of Southern Freight 
Association. Approved. Docket No. 116. 

Tar or pitch, coal, petroleum or hardwood, C.L. and L.C.L. Applica- 
tion of Southern Freight Association revise rates. Approved. Docket 
No. 411. 

Tobacco leaf, cancellation of proportional rate from Duncan, N. C, to 
Durham, N. C. Application of Norfolk Southern Railroad Co. Approved. 
Docket No. 116. 

Tobacco, leaf, cancellation of rates from Roxboro and Stoneville, N. C. 
to North Carolina destination. Application of Norfolk & Western Rail- 
way Company. Approved. Docket No. 116. 



Decisions and Adjustments of Complaints 151 

Tobacco, unmanufactured. Application Southern Freight Tariff Bureau 
cancel rate 18% cents Oxford to Winston-Salem, erroneously published. 
Approved. Docket No. 454. 

Tobacco stems, revision of rates on. Application of Southern Freight 
Association, Denied. Docket No. 59 8. 

Transit, stopping of cars in, to complete loading or to partially unload. 
Revision of charges and rules. Application of Southern Freight Tariff 
Bureau. Approved. Docket No. 137. 

Trap cars and station order cars, revision of definition. Application 
of Southern Freight Association. Approved. Docket No. 710. 

Turpentine cups, iron or steel, C.L. Revision of rates. Application of 
Southern Freight Association. Approved. Docket No. 764. 

Vegetables. Application of Southern Freight Tariff Bureau to provide 
for shipments in bags. Approved. Docket No. 4 69. 

Watermelons, C.L., truck competitive rates on. Southern Freight 
Tariff Bureau. Truck competitive tariff (watermelon) I.C.C. 19 47. Al- 
lowed to expire September 30, 1935. Docket No. 116. 

Whey, dried, and corn oil cake, corn oil cake meal and corn germ cake 
and meal, inclusion in list of articles used in the manufacture of mixed 
feed and grain and grain products under transit arrangements. Applica- 
tion of Southern Freight Association. Approved. Docket No. 624. 

Wool, mineral, plain or saturated, or metal reinforced. Application of 
Agent E. H. Dulaney, to revise ratings, approved. Docket No. 246. 

IN THE MATTER OF APPLICATION OF AGENT SPEIDEN TO CANCEL 
RULE 1 OF COMMISSION'S CIRCULAR NO. 339 

Order 

In pursuance of further proceedings in the matter of above application, 
subsequent to our order dated August 6, 1934, postponing to a date to 
be later announced the effective date of our order dated July 23, 1934, 
effective August 15, 1934, further hearing was ordered and held at Ra- 
leigh, November 22, 1934, before Chairman Winborne and Associate 
Commissioners Seely and Hanft, with the following appearances: 

For Carriers: 

H. V. Borjes for all North Carolina railroads 

G. R. Ward for Seaboard Air Line Railway Co. 

W. W. Wolford for Southern Railway Company 

A. L. Thompson, 

H. R. Ellis for Atlantic & Yadkin Railway Company. 

For Shippers: 

W. L. Thornton, Jr., for R. J. Reynolds Tobacco Company 

and N. C. Traffic League 
C. F. Bauserman for Hanes Knitting Company 
C. W. Strickland for Proximity Manufacturing Co. 
W. S. Creighten for Charlotte Shippers and Manufacturers 

Association, and North Carolina Traffic League. 



152 ]^^. C. Utilities Commission 

After giving careful consideration to the further testimony and pro- 
ceedings in this matter, the Commission concludes and so holds that its 
order of July 23, 19 34, effective August 15, 19 34, properly disposes of 
the question, and that any controversy arising as to "what is the rate- 
making line" may be referred to this Commission for attention. 

It is, tiiereforp:, ordered. That the Commission's order dated July 23, 1934. 
effective August 15, 1934, and subsequently postponed, be and the same 
ip hereby ordered made effective March 1, 19 3 5. 
This 12th day of February, 193 5. 

Stanley Winborne, 
R. O. Self, Chief Clerk. Utilities Commissioner. 

F. L. Seely, 
(Seal) Associate Commissioner. 

F. W. Hanft, 
Docket No. 55 Associate Commissioner. 

IN THE MATTER OF INCREASES IN FREIGHT RATES AND CHARGES, 

1935 

Order 

J. E. Tilford, Chairman of the Executive Traffic Committee of the 
Southern Carriers in the Southern Group, for and on behalf of Class I 
Railroads operating in the State of North Carolina, on August 31, 19 34, 
petitioned this Commission for authority to increase freight rates and 
charges on intrastate traffic moving within the State, to the exent indi- 
cated in Exhibit "A" attached to the petition, which exhibit, in effect, is 
the petition to the Interstate Commerce Commission seeking permission 
to increase freight rates and charges a like amount on interstate traffic 
within the Continental United States, because carriers "are confronted 
with an emergency threatening serious impairment of their financial re- 
sources and of their capacity to assure the public a continuance of effi- 
cient and adequate service." 

On a subsequent date the short or weak lines, through American Short 
Line Railroad Association, likewise petitioned this Commission for the 
same amount of increases for account of those lines. 

Petitioners requested that hearings with respect to the intrastate rates 
be deferred "until a decision has been reached by the Interstate Com- 
merce Commission with respect to interstate rates." 

The Interstate Commerce Commission, having heard the petitioners, on 
March 2 6, 1935, rendered its opinion in this matter, reported at 208 
I. C. C. 4, in which the petition was denied, but provided "as a temporary 
measure for the alleviation of the more acute financial stress of the 
railroads that a moderate increase should be allowed as follows: 

'The emergency charges authorized are set forth in detail in ap- 
pendix A. In Part 1 are shown the general bases of these charges. 
On carload traffic in general the emergency charge is 7 per cent of 
the line-haul transportation charge, but not more than 5 cents per 
100 pounds. Specific maximum charges on various commodities 
which will take precedence over the general 5-cent maximum are 
shown in Part 4. Part 5 relates to coal, iron ore, petroleum, and 



Decisions a:n:d Adjustments of Complaints 153 

certain other commodities for which specific charges are designated 
without reference to Part 1. Part 2 consists of rules relating to 
special services and also rules governing the application of the charges 
set forth in the other parts. In Part 3 are listed the commodities 
which are exempted from the application of the emergency charges.' " 

Chairman Tilford filed with this Commission an amended and supple- 
mented petition, dated April 6, 193 5, to his former petition, and in said 
supplementary petition, says: 

"That, having before it the statement and application of the steam 
railroads of the United States, which was filed as Exhibit "A" with 
the petition dated August 31st, 1934, the Interstate Commerce Com- 
mission docketed the same under the title 'Emergency Freight 
Charges 19 3 5 — Ex Parte No. 115, in the matter of Increases in 
Freight Rates and Charges 19 35.' 

"That the Interstate Commerce Commission conducted and held a 
series of hearings therein at Washington, D. C, Denver, Col., Salt 
Lake City, Utah, Portland, Ore., San Francisco, Calif., Ft. Worth, 
Texas., Birmingham, Ala., Chicago, 111., and subsequently another 
hearing at Washington, D. C, and the testimony was closed early in 
December, 193 4. In view of the filing by applicants of similar peti- 
tions with the State Commissions the Interstate Commerce Commis- 
sion invited the cooperation of those commissions and they appointed 
a committee representative of the various rate territories. Members 
of this committee sat with the Interstate Commerce Commission at 
the hearings and during the oral argument. During the course of 
said hearings and oral argument all parties having any interest in 
said proceedings were afforded an opportunity to be heard and were 
heard. All State Commissions were supplied with copy of the tran- 
script of record, exhibits and briefs filed in the proceedings. 

"That the conditions which called for and warranted the increases 
in interstate rates and charges which have been authorized by the 
Interstate Commerce Commission apply equally to intrastate freight 
rates and charges, and increases in those rates and charges equal 
to the increases in interstate freight rates and charges as authorized 
by the Interstate Commerce Commission are necessary in order to 
afford your petitioners a measure of relief necessary in the present 
emergency. Further, in order that the increase in rates and charges 
may be fairly and equitably distributed throughout the Southern 
States, it is necessary that the advances in rates and charges on 
intrastate traffic conform to and harmonize with those authorized 
and established by the Interstate Commerce Commission on interstate 
traffic, and concurrently with the rates and charges established on 
interstate traffic." 

The North Carolina Utilities Commission appeared at the Washington 
hearing before the Interstate Commerce Commission and gave testimony 
to the effect that in its opinion, regardless of the carrier's needs, compe- 
tition with other transportation agencies would prohibit rail carriers from 
collecting increased charges if authorized. This Commission, therefore, 
opposed the increases. 

As in the present case, in 19 31 the railroads petitioned the Interstate 
Commerce Commission for a fifteen per cent increase in freight rates 
and charges which petition was denied. However, the Interstate Com- 
merce Commission found justified temporary fiat increases in freight 
rates, which were to expire on March 31, 1933. This Commission heard 
the carriers' petition for similar increases on North Carolina intrastate 



154 'N. C. Utilities Commission 

traffic, which, with few exemptions, was granted to expire simultaneously 
with the interstate emergency charges. Prior to the expiration of these 
charges, petitioners sought an extension of same which the Interstate 
Commerce Commission granted, to expire September 30, 1933. Upon 
application to this Commission for an extension of these charges, same 
was denied; whereupon the carriers petitioned the Interstate Commerce 
Commission, under Section 13 of the Interstate Commerce Act, and the 
latter promptly found that the rates within North Carolina "result and 
will result in unjust discrimination against interstate commerce" to the 
extent that State rates were lower, in the amount of the emergency 
charges, than interstate rates. As a consequence of said Interstate Com- 
merce Commission order, the emergency rates and charges were imme- 
diately restored to North Carolina intrastate traffic. 

In view of the above case we are of the opinion that a hearing in this 
case, as far as intrastate rates and charges within North Carolina are 
concerned, would be futile, in view of the Interstate Commerce Commis- 
sion having already given the matter due consideration in conjunction 
with representatives of State Commissions. 

We are of the further opinion that should we deny petitioners' amended 
and supplemental petition, 13th Section complaint under the Interstate 
Commerce Act would be filed with the Interstate Commerce Commission 
which would render an opinion favorable to the railroads as was done in 
the case hereinbefore mentioned. 

Therefore, in deference to the order of the Interstate Commerce Com- 
mission, the rates and charges set forth in detail in appendix A, attached 
hereto and made a part hereof, are hereby authorized on North Carolina 
intrastate traffic, to take effect on May 1, 193 5, and to expire on June 
30, 1936. 

In incorporating these charges in the tariffs, practical considerations 
may require minor deviations from the plan as set forth in appendix A, 
and these will be permitted where they do not amount to a substantial 
departure from the plan, being that outlined by the Interstate Commerce 
Commission. 

This 12th day of April, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

(Seal) Docket No. 191. 



Decisions and Adjustments of Complaints 155 

APPENDIX A 

Emergency Charges 

Part 1. — General Bases of Emergency Charges: 
Section (a); Carloads: 

Seven per cent of the total line-haul transportation charges, but not 
more than 5 cents per 100 pounds (subject to the provisions of Parts 2 
to 5, inclusive). 

Section (b): Less than carloads, (subject to the provisions of Part 2): 

Emergency Charge 
Where the first class rate is — will be — 

(cents) 

106 cents and less 

107-117 cents 1 

118-129 cents - 2 

130-141 cents 3 

142-150 cents 4 

151-15 6 cents 5 

157-162 cents 6 

163-168 cents - 7 

169-174 cents - 8 

175-180 cents 9 

181-186 cents 10 

187 cents and over 11 

Part 2. — General rules governing Parts 1, 4, and 5: Bases for Emergency 

CHARGES on SPECIAL SERVICES: 

(a) No emergency charge on less-than-carload traffic applicable to 
line-haul transportation shall be in excess of 10 per cent of the line- 
haul transportation charges. 

(b) Only one emergency charge shall be assessed on any shipment, 
whether the transportation charges are based on combination rates or 
otherwise. Except as otherwise provided in Part 5 for lake-cargo and 
tidewater coal and lake-cargo iron ore, this proviso does not apply where 
there are two movements subject to the act separated by an intermediate 
movement not subject to the act. 

Where the minimum weights are different in connection with the 
separate factors in combination through rates, the minimum to be ob- 
served in assessing the emergency charge shall be the lowest applicable 
to any factor. 

(c) An emergency charge of 10 per cent may be added to all switching, 
floatage, and lighterage charges except when in connection with line-haul 
shipments upon which there is no line-haul emergency charge. Absorp- 
tion of such charges should be proportionately increased. 

(d) An emergency charge of 10 per cent may be added to all charges 
for reconsigning, diversion, weighing, loading, unloading, fabrication and 
other transits (including stopping for partial loading and unloading), 



156 ]N^. C. Utilities Commission 

and back-haul or out-of-line charges. This paragraph does not apply to 
shipments upon which there is no line-haul emergency charge. 

(e) Where line-haul carload rates are stated in amounts per car or 
any unit other than weight, and transportation charges are not based 
on the weight of the shipment, the weight for the purpose of assessing 
emergency charges will be deemed to be 40,000 pounds, except that if 
the actual weight of the shipment is furnished, the emergency charge 
rate provided in Parts 1, 4, or 5 (as the case may be) may be applied 
subject to actual weight but not less than 30,000 pounds. 

(f) Mixed carloads. — Where mixed carloads consist of articles subject 
to different emergency charges, apply the emergency-charge rate applica- 
ble to each commodity at the actual weight of each, any deficiency in 
weight to be made up of the article subject to the lowest emergency- 
charge rate. 

(g) An emergency charge of 10 per cent may be added to all carload 
minimum charges not based on weight and to charges on railway equip- 
ment on their own wheels. 

(h) Where less-than-carload rates are stated in amounts per unit, 
other than weight, and transportation charges are not based on the 
weight of the shipment, the emergency charge will be 10 per cent of the 
transportation charges, except that where there would be no emergency 
charge under Part 1, none will be made, and except that if the actual 
weight of the shipment is furnished, the emergency charge provided in 
Part 1 may not be exceeded. 

(i) The total charges on a less-than-carload shipment, which result 
from the transportation charges plus the emergency charge, must not 
exceed the total charges on a carload shipment of the same commodity, 
which result from the transportation charges plus the emergency charge, 
if any. 

(j) Where less-than-carload shipments are subject to minimum trans- 
portation charges, the emergency charge will be at the rate stated in 
Part 1, based on the weight of the shipment but not less than the weight 
used in determining the transportation charges, and in no case shall the 
emergency charge be less than 5 cents per shipment. 

(k) Where all-water rates subject to the act, or joint rail-and-water 
rates, are differently related to all-rail rates, the emergency charges to 
be added to such all-water or rail-and-water rates may be the same in 
e„mount as those applicable to the all-rail rates from and to the same 
points. 

(m) No emergency charges are authorized in charges for the following 
services: Special train movements; crane services; ferry or trap cars. 

(n) No emergency charges are authorized in connection with rates 
established to meet truck or water competition (and so indicated in 
tariffs) if no less-than-carload emergency charge is authorized between 
the same points. 

(p) The emergency charges herein authorized may be assessed by 
carriers subject to the act whether or not they are parties to the pending 



Decisions and Adjustments of Complaints 157 

applications. Such charges are maxima and not minima. But, in order 
to avoid undue prejudice and preference, such charges should be made 
effective generally and applied as uniformly as possible, except that where 
under particular proposals in the pending applications the emergency 
charges would be less than that herein authorized, such exceptions may 
be observed. 

(q) Where line-haul transportation charges are based on rates which 
are the same for less-than-carload and carload shipments, such shipments 
should be treated as less-than-carload freight except that where the 
weight of such shipments is the same or higher than the carload mini- 
mum weight provided in the tariffs publishing such rates or, in the 
absence of such minimum weight, where the weight of the shipment is 
the same or higher than the minimum weight provided for carloads in 
the consolidated classification, the carload emergency charges will apply 
if less. 

(r) The commodity group numbers in parts 3-5, inclusive, are those 
specified in the order of the Commission, division 4, of November 2 2, 
1927, In the Matter of Freight Commodity Statistics. Except as other- 
wise provided and except where prefixed by circled figure 1, they should 
be understood in a general way as covering the specific items customarily 
included by the carriers in their reports to the Commission under each 
numbered description. Where prefixed by circled figure 1, the designated 
descriptions apply only on the commodities specifically here named. It 
is not intended that the commodity descriptions be followed exactly in 
all cases, but departures from such descriptions may be made in order 
to make the emergency charges conform as nearly as may be to com- 
modity descriptions generally used in tariffs. 

(s) The emergency charges herein set forth are to be superimposed 
upon the tariff rates applicable during the period for which such emer- 
gency charges are authorized. 



158 



]^. C. Utilities Commission 



PART 3.— commodities, IN CARLOADS, ON WHICH NO LINE-HAUL EMERGENCY 
CHARGES ARE AUTHORIZED: 



Group 




GrDup 





num- 


Description 


num- 


Description 


ber 




ber 




10 

20 


L Wheat, corn, oats barley and 


141 
142 


Onions 
Tomatoes 


30 
40 


rye. 


143 


Vegetables, fresh, n. o. s. 


J 


150 


Beans and peas, dried 


41 


Rice. 


152 


Vegetables, dry, n. o. s. 


42 


Grain, n. o. s., (other than 


163 


Sugar beets 




popcorn and dried sweet 


164 


(1) Products of agriculture, n. o. 




corn) 




s., as follows : Beans, soy ; 


50 


Flour, wheat 




beans, velvet ; corn cobs ; 


51 


Meal, corn 




corn-cob meal ; corn husks. 


52 


(1) Flour and meal, edible, n. o. s. 




shucks, or stalks ; flaxseed 




Buckwheat flour ; corn flour. 




hulls ; peas, Austrian win- 




fl)ur, edible, n. o. i. b. n. ; 




ter or Canada field; peas, 




pancake flour ; rye flour ; 




cow ; sugarcane. 




self-raising flour. 






61 


Mill products, n. o. s., except 


180 






alfalfa meal, (not including 


181 






products prepared for hu- 


190 


> Cattle, calves, sheep, goats 




man consumption other 


191 


and hogs 




than grits and hominy). 


200 




70 


Hay and alfalfa. 


201 


^ 


71 


Straw from threshed grain ; 


282 


(1) Milk, fresh, and cream 




also rice straw. 


330-332 


Ores and concentrates (cop- 


90 


Cotton in bales, carloads or 




per, lead, and zinc) 




any quantity. 


400 


(1) Logs and bolts (short logs)* 


100 


Cottonseed 


401 


Posts, poles and piling 


110 


Oranges and grapefruit 


402 


Fuel wood 


111 


Lemons, limes, and citrus 


410 


Ties, railroad 


120 


^ fruits, n. o. s. 


420 


Pulpwood 


123 


I ^ . . , 


430 


(1) Lumber, shingles, and lath 


125 


> Fruits, fresh, other than cold 




(other than bolts)* 


126 


pack 


431 


Box, crate, and cooperage 
materials 
(1) Veneer and builtup wood* 


127 


(1) Fruits, fresh, domestic, n o.s. 


432 




(other than cold pack). 


443 


(1) Products of forests, n. o. s. : 




Apples, cherries, pears. 




Brush rip-rapping ; shavings. 




plums, quinces 




wood ; sawdust ; wood, acid. 


130 


Potatoes, other than sweet 




chemical, or resinous 


140 


Cabbage 


640 


Fertilizers, n. o. s. 



* Applies only on articles made of Mexican pine or of domestic or Canadian wood (other 
than butternut cherry, dogwood, holly, ironwood, lancewood, Spanish cedar, or walnut). 
PART 4.— MAXIMUM EMERGENCY CHARGE RATES, CARLOAD, (SUBJECT TO THE 
PROVISIONS OF, AND MAXIMA PROVIDED IN, PARTS 1 AND 2) : 



Group 
num- 
ber 


Description 




Per 100 
pounds 


42 
52 
60 
80 
91 
101 
121 


(1) Corn, dried, sweet; corn, pop 


Cents 
3 
3 


(1) Oatmeal 


(1) Oats rolled 


3 

4 
3 
3 
3 








Bananas 


122 


Berries fresh (other than cold pack) 


3 


124 




3 


127 


(1) Fruits, fresh, domestic, n. o. s. (other than cold pack) : 


3 




N. O. I. B. N. 


3 


128 
160 
162 
164 


Fruits fresh, tropical, n. o. s. (other than cold pack) 


3 


Vegetable-oil cake and meal 


3 




2 


(1) Products of agriculture, n. o. s., viz. : 


3 




Beet pulp . 


2 




Broomcorn 


3 




Cocoanuts fresh 


3 




Copra 


3 




Meal (bean clover, kapok seed, pea, peanut vine, rape 


seed, sir- 


3 




Peanut hulls or chaff . .. 


2 




Pomace, grape, or castor bean . . 


3 




Residue, beet 


2 



Decisions and Adjustments of Complaints 



159 



PART 4.— MAXIMUM EMERGENCY CHARGE RATES, CARLOAD (SUBJECT TO THE 
PROVISIONS OF AND MAXIMA PROVIDED IN PARTS 1 AND 2) -.—continued 



Graup 
num- 
ber 



210 
220 

222 
270 
282 



333 
350 
351 



352 
353 
370 
380 



391 

392 



400 
430 
432 
440 

443 



450 

451 
452 
470 
490 
491 
500 



Description 



Fresh meats, n. o. s 

Meats, cured, dried or smoked 

Packing-house products, edible, n. o. s - 

Hides, green (cattle, hog, goat, or sheep) 

(1) Animal products, n. o. s 

Feeds, viz. : blood flour, blood meal, buttermilk condensed or 
dried, tankage, fish meal, fish scrap, and meat scraps or 

refuse ; hoofs, horns 

Fleshings (glue stock) 

Ores and concentrates, n. o. s 

Gravel and sand (other than glass or moulding) 

Stone or slag, broken, ground or crushed (not including material 
ground to fineness to pass through a screen of 200 meshes to 
the inch) ; also ashes or cinders (coal or coke), and gravel or 

crushed stone coated with tar or similar material) 

(1) Stone, rough, n. o. s 

Paving, curbing and flagging, and bridge stone 

Other than as described next above 

(1) Stone, finished, n. o. s 

Dressed, but not honed, carved, lettered, polished, or traced 

Carved, lettered, polished, or traced 

Asphalt natural, by-product, or petroleum, including gilsonite) ; 
pitch or tar (coal, gas-house, fuel, paving petroleum, hardwood 

or roofing) , 

Salt 

Phosphate rock, crude (ground or unground) ; also phosphate rock 

sinter, colloidal phosphate, phosphatic sand 

Sulphur - 

(1) Products of mines, n. o. s 

Gravel and sand, industrial, except naturally bonded moulding 

sand, (in open-top cars) 

Gravel and sand, industrial (in closed cars), including naturally 

bonded moulding sand in either open or closed cars 

Fluxing stone ; bituminous asphalt rock ; dolomite, not roasted ; 

marl ; agricultural limestone 

Barytes and barytes ore ; borate rock ; crude chalk ; clay other 
than unground common or fire ; clay ashes ; diatomaceous or 
fuller's earth ; tripoli or tripoli rock ; flint, quartz or silica, 
crude or ground ; iron pyrites ; pyrites cinder or ore ; mica 
or vermiculite, other than sheet, block, built-up or splittings ; 
sulphate of magnesia, crude ; magnesite, crude ; feldspar, fire- 
store ; fluorspar ; volcanic ash ; roasted dolomite ; cobble 
stones ; ground iron ore ; marble or limestone chips (terrazo 
material ) ; ocher ; slate, blocks, slabs or ground ; talc ; marble 
or limestone ground to fineness to pass through a screen of 

200 meshes to the inch ; whiting 

(1) Logs and bolts (short logs)-b 

(1) Lumber, shingles and loth (other than bolts) 2 

(1) Veneer and built-up wood-b 

Rosin .-. 

(1) Products of forests, n. o. s. : 

Briquettes, wood charcoal ; charcoal, wood ; excelsior, wood or 

paper 

Chips (shavings) brewers or vinegar; cigar-box lumber; cork 
dust (cork-bark refuse) ; cork chips, refugo shavings, virgin 
bark or waste ; cones, fir and pine ; pine needles ; shingle 
tow or shavings; tanbark, leaf (stick) ground, spent or not 

spent ; trees, Christmas 

Petroleum oils, refined, including blended gasolines and coal tar 

benzene (benzol) 

Fuel, road, and residual oils, n. o. s. (petroleum) 

Lubricating oils and greases 

Sugar, beet, cane, or corn 

Iron, pig 

Iron or steel, rated sixth class in official classification, n. o. s 

Rails, fastenings, frogs, and switches 



Per 100 
pounds 



a No emergency charge where line-haul rate is $1 per net ton or less. 

b Applies only on articles made of woods other than those specified opposite the corre- 
sponding group numbers in Part 3. 

c No emergency charge where line-haul rate is 7 cents per 100 pounds or less. 



160 



]Sr. C. Utilities Commission 



PART 4— MAXIMUM EMERGENCY CHARGE RATES, CARLOAD (SUBJECT TO THE 
PROVISIONS OF AND MAXIMA PROVIDED IN PARTS 1 AND 2) -.—continued 



Group 
num- 
ber 

510 
511 

512 
513 

583 
693 
520 
522 
523 
540 
550 

551 



Description 



Iron or steel pipe and fittings 

Iron or steel: nails and wire, not woven 

Iron or steel, rated fifth class in official classification, under the 
heading "Iron or steel" ; also in tin and terne plate 

Railway car wheels and axles 

Scrap iron and scrap steel 

Copper ; ingot, matte, and pig 

Lead and zinc ; ingot, pig, or bar 

Aluminum ; ingot, pig or slab 

Cement, hydraulic, natural, or Portland 

Brick, common (including brick, broken, crushed or ground, high- 
temperature bonding mortar and common or fire clay, not 
ground) 

Brick, n. o. s. and building tile 



Per 100 
pounds 



Cents 
2 



2 

2 

2 

2.5 

2.5 

2.5 

1 



c 1 
c 1 



PART 4.— MAXIMUM EMERGENCY CHARGE RATES, CARLOAD (SUBJECT TO THE 
PROVISIONS OF AND MAXIMA PROVIDED IN PARTS 1 AND 2) -.—continued 



Group 
num- 
ber 



552 



560 
561 
580 
582 
620 
640 
650 
651 
661 
694 
695 
696 
697 
701 



Description 



Per 100 
pounds 



(1) Artificial stone, n. o. s. : Cents 
Artificial stone and terra-cotta building blocks (not carved, let- 
tered, polished, or traced) 2 

Artificial stone and terra-cotta building blocks (carved, let- 
tered, polished, or traced) } 3 

Paving blocks (asphalt, cement, or concrete) ; building or silo j 
blocks (cement or concrete) ; pilinsr, staves, or posts (ce- ! 

ment) ; curbing, rings, slabs, and railroad ties (concrete) | i 

Block or tile, building (gypsum or plaster) 1 2 

Lime, common, chemical, or fluxing (hydrated, quick, or slaked).... ^ i 

Plaster (stucco or wall) or dried kalsomine j 2 

Agricultural implements and parts, n. o. s j 4 

Tractors and parts , 4 

Beverages „ 3 

Fertilizers, n. o. s ] 2 

Newsprint paper ! » 

Printing paper / 3 

Sulphuric acid 3 

Paper bags and wrapping paper 

Paper board, pulpboard, and wall board (paper) 

Building paper and prepared rofing materials 

Building woodwork, millwork 3 

(1) Manufacturers and miscellaneous, n. o. s. 

Binder twine 4 

Coal or coke, ground or pulverized, in bags 3 

CuUet 2 

Feed, animal or poultry, rated under that heading in consol- 
idated classification 3 

Packages (beverage or mineral water), empty, returned (bar- 
rels or kegs, wooden or metal, old, bottles, old, and bottle- 
carrying boxes or crates, old) 1 

Board, plaster 3 

Pyrites, cinder, refuse or gross 2 

Rags 3 

Rosin sizing 4 

Salt cake 2 

Shard (broken pottery, saggers, or tile) j 2 

Tanning extract 3 

Waste paper 2 

"Wood pulp 1 



Decisions and Adjustments of Complaints 



161 



PART 5.— SPECIFIC EMERGENCY CHARGE RATES CARLOADS (NOT SUBJECT 

TO PART 1) : 



Group 
num- 
ber 



360 

472 



701 
320 



290 
300 



310 



Description 



Petroleum, crude 

Molasses (blackstrap), viz: Molasses or syrup, final or 

residual (bett, cane, or corn) 

(1) Lignin liquor or pitch 

Iron ore (not ground) including iron sinter and con- 
centrates 

Note. — But one emergency charge may be applied on 

lake-cargo iron ore, whether or not moving beyond 

Lake Erie docks. 

Anthracite coal 

Bituminous coal 

Section A, general (to apply except where otherwise 

provided in sections B and C). 
Where rate per net ton is — 



75 cents or less 

76 cents to $1.00 , 

$1.01 to $1 50 

Over $1.50 

Note. — The emergency charge on coal from producing 
districts or points from which the rates are related by 
recognized differentials will in each instance be deter- 
mined by applying the above scale to the rates from the 
recognized base group or base point, and then applying 
the same emergency charge rate from other related 
groups, except that no emergency charge is authorized 
on unprepared anthracite moving to brakers for prepara- 
tion and reshipment by rail, and except that on bitu- 
minous coal the emergency charge should not exceed 10 
cents per net ton in tne following cases : to Youngstown, 
Ohio, from the Pittsburgh, Connellsville and related dis- 
tricts and ex-river from Colona and Conway, Pa. ; and 
to Canton, Akron, and Massillon, Ohio, from the Mid- 
dle and Massillon districts in Ohio and from the Pitts- 
burgh district in Pennsylvania and related districts. 

Section B, Lake-cargo coal 

(a) Except as otherwise provided in (b), but one 
emergency charge of 15 cents may be applied in connec- 
tion with the transportation of lake-cargo coal which 
moves beyond docks in the United States on Lake Supe- 
rior or on the west bank of Lake Michigan (either as 
coal or as briquettes produced from such coal at the 
head of the lakes). 

(6) On lake-cargo coal resting at or in transit to Lake 
Michigan and Lake Superior docks at the time the emer- 
gency charges herein authorized become effective, the 
graduated emergency charges set forth in Section A will 
apply. 

Section C, Tidewater coal : On tidewater coal destined 
to New England there will be but one emergency charge. 

Coke 

Where rate per net ton is — 

75 cents or less 

76 cents to $1.00 

$1.01 to $1.50 

Over $1.50 



1^ per 100 pounds 

1^ per 100 pounds 
1^' per 100 pounds 

10^' per net ton. 



Emergency charge 
per net ton will 
be— 

3 cents 

5 cents 

10 cents 

15 cents. 



15^ per net ton. 



.54 per net ton. 

Emergency charge 
per net ton will 
be— 

3 cents 

5 cents 

10 cents 

15 cents. 



Docket No. 191. 



162 ]Sr. C. Utilities Commission 

IN THE MATTER OF PETITION OF RAIL CARRIERS FOR EXTEN- 
SION OF EMERGENCY FREIGHT CHARGES ON NORTH CAROLINA 
INTRASTATE TRAFFIC 

Order 

Comes J. E. Tilford, Chairman, Executive Committee of Carriers in 
Southern Group, for and in behalf of railroads operating in North Caro- 
lina, asking that this Commission authorize the carriers by steam rail- 
roads to extend the application of the Emergency Charges now applica- 
ble on North Carolina, scheduled to expire on June 3 0, 193 6, to apply to 
December 31, 1936, subject to the same conditions and exceptions re- 
quired by the Interstate Commerce Commission on interstate traffic as 
shown in findings and order of that Commission on June 9, 1936 (215 
I. C. C. 439). 

The instant petition, dated June 13, 1936, is an amended and supple- 
mentary one to the original petition under date of January 24, 1936, 
filed with the Interstate Commerce Commission, copy of which was filed 
with this Commission on February 1, 19 3 6. 

In filing the original petition the petitioner requested that action be 
deferred on the petition by this Commission until a finding had been 
reached by the Interstate Commerce Commission. That request was 
complied with by this Commission and accounts for any seeming delay. 

This Commission has before it the decision of the Interstate Commerce 
Commission in this case and notes that on page 459 it says: "We find that 
the applicants' proposal to continue the emergency charges indefinitely 
has not been justified." 

In its conclusion, at page 4 67, the following is said: 

"We find that the present rates and charges, as increased by the 
emergency charges here authorized for temporary continuance will 
not be in excess of just and reasonable rates for a period to termi- 
nate December 31, 1936. We shall grant the necessary authority 
under Section 6 for filing blanket supplements embodying the emer- 
gency charges here provided for, and such supplements will be per- 
mitted to take effect without suspension; subject to the proviso that 
the resulting rates will in all respects be subject to complaint or 
to investigation and to determination as to the lawfulness of sched- 
ules of rates, as provided by this act," 

This Commission also has before it complete transcript records of all 
the hearings held by the Interstate Commerce Commission, namely, at 
Washington, D. C, Atlanta, Ga., Fort Worth, Texas, Salt Lake City, Utah, 
Minneapolis, Minn., Chicago, 111., and Boston, Mass. 

Quoting again from the Interstate Commerce Commission decision: 

"After the applicants had completed their evidence in support of 
the supplemental petition, the National Coal Association, joined by 
a large number of other commercial organizations and shippers, filed 
another motion, urging that the record, including applicants' addi- 
tional evidence, did not warrant any further affirmative action on 
our part, and that the supplemental petition should be dismissed 
forthwith. Other motions of the same import were filed on behalf 
of the National Bituminous Coal Commission, the National Associa- 



Decisions and Adjustments of Complaints 163 

tion of Railroad and Utilities Commissioners, on behalf of 33 State 
Regulatory Commissions and the Public Service Commission of 
Wyoming and certain chambers of commerce of that state. 

"After hearing oral argument in support of and in opposition to 
these motions, we overruled them but issued no report thereon." 

Quoting further from the Interstate Commerce Commission order: 

"The emergency charges authorized in our original report are 
shown in the appendix to that report. On carload traffic in general 
the emergency charge is 7 per cent of the total line-haul transporta- 
tion charges, subject to maxima ranging from 1 cent to 5 cents per 
100 pounds. On coal, coke, iron ore, and certain other commodities 
specific charges were authorized without percentage. The charges 
were published in a master tariff having countrywide application in 
connection with individual tariffs making reference to the master 
tariff. In supplements to the latter tariff some of the charges origi- 
nally authorized were later eliminated or reduced. A few of these 
changes may be referred to by way of illustration. Emergency 
charges on flax straw, tanbark, and a number of wooden articles 
commonly taking lumber rates were entirely removed. The maxi- 
mum charge of 3 cents per 10 pounds on animal or poultry feeds 
not made wholly of grain was reduced to 1 per cent. The maximum 
charge on horses and mules was lowered from 5 cents per 100 pounds 
to 3 cents. In a few instances the publication of charges not origi- 
nally authorized was later permitted as to articles similar in nature 
to others for which charges had been provided. 

"In addition to these changes in the master tariff, many cancella- 
tions have been effected by individual carriers or groups of carriers 
on specified commodities moving within or between particular rate 
territories or subterritories. In official territory the carriers did not 
avail themselves of the authorization to add emergency charges to 
their handling charges at lake ports on lake-cargo coal and iron ore. 
In the same territory the charges were removed from brass, bronze, 
copper, and certain other metals in less than carloads and carloads, 
from magazines, newspaper supplements, bakery goods, grape juice, 
crude rubber, cigarettes, rayon, and confectionery, in carloads, and 
from dairy products in carloads and less than carloads. For the 
same reason the charges were removed from dairy products in less 
than carloads and carloads and canned goods in carloads from south- 
ern, southwestern and western trunk-line territories to official terri- 
tory. Export coal originating in official and southern territories was 
excepted from the charges, as was also unmanufactured tobacco for 
export. In southern territory, on sand, gravel, and crushed stone, 
the carriers substituted a flat increase of 5 cents per ton in lieu of the 
emergency charge of 7 per cent, subject to a maximum of 2 cents 
per ton in basic rates exceeding $1 per ton. The southern carriers 
also undertook to extend this increase of 5 cents per ton to all rates 
in excess of 6 cents per ton, but their proposal was found not jus- 
tified, Emergeyicy Charges on Sand and Gravel in the South, 213 
I. C. C. 4 81. In western trunk-line territory the charges have been 
eliminated from automobiles and canned goods. There have been 
innumerable other removals of the emergency charges having more 
limited application." 

This resume showing the application and the non-application of the 
charges at the pleasure of a carrier or a group of carriers, shows w^hat 
a crazy quilt blanket that exists — one that leaves the door wide open to 
discrimination against not only shippers on a certain railway in favor of 
shippers on other railways but against the agricultural and industrial 
interests of a state in favor of another state or states. 



164 !N". C. Utilities Commission 

The fact as pointed out in this extract that so many deviations and 
eliminations have been made should be a sufficient reason to condemn 
the system without the more potent reason that the emergency charges 
themselves are not warranted by sound reasoning. 

It is also gathered from the discussion in the Interstate Commerce 
Commission order that, while the carriers as a whole have shown some 
financial improvement, it is noted that the emergency charges have not 
prevented railroad receiverships. We quote: 

"On August 1, 1934, Class I railroads with a total of about 40,000 miles 
of line, were under such control (courts). By December 13, 1935, this 
number had risen to 33, having 68,399 miles of line. On the same date 
there were 93 railroads of all classes under court control, operating 70,- 
813 miles of line, 27.78 per cent of the total of the country. These fig- 
ures set record high marks for a period of more than 60 years." 

This situation causes great apprehension and to a student of railway 
economics it is apparent that high freight charges will not solve the prob- 
lem. The resort to the emergency charge is very much like a woodman 
whittling at the bark of a tree when the canker worm is doing its work in 
the body of the tree. 

This pertinent fact is pointed out: 

"It appears that the charges on coal have produced about 30 per cent 
of the total revenue from the charges. A prominent contention on be- 
half of the coal interests is that the more necessitous railroads derive 
only secondary benefit from the charges on coal. They point out that 
about 31.5 per cent of the revenue from, coal charges reported by the 
principal coal roads has accrued to the thi^ee v^osperoiis coal-carrying 
lines of the Pocahontas region and certain others, specializing in the 
transportation of this commodity, that about 26 per cent of it went to 
another group which includes certain outstanding carriers generally re- 
garded as financially strong and others with fairly satisfactory earnings, 
and that the remaining 42.5 per cent of the additional coal revenue was 
distributed among carriers undergoing reorganization and others which 
in 1935 failed to earn fixed charges or barely did so. It is, therefore, 
argued that the charges on coal have contributed relatively little to- 
wards relieving the railroads' financial distress.'" 

Right here is food for thought. It shows the fundamental weakness of 
the proposition. Any scheme of rate adjustment which makes the fat car- 
riers fatter and adds little or nothing to the lean carriers cannot be justi- 
fied and should be junked. 

By extending the charges for an additional six months' period, the Inter- 
state Commerce Commission ignored the strong testimony of the overwhelm- 
ing majority of State Commissions, many of the largest shipping interests 
of the country, counsel within its own ranks, expressed in the dissenting 
opinion of Commissioner Aitchison, concurred in by Commissioners Porter and 
Tate, and in direct confiict with its own argument and decision in the pas- 
senger rate case decided on February 28, 1936, 214 I. C. C. 173. 

In the passenger rate reduction case the same contentions were made by 
the carriers as in the present case: that a reduction in rates would cause a 
deficit of millions followed by the most serious consequences. 

In that case the Commission pointed out the vital defect in the carriers' 
reasoning in that "they assumed that a reduction in the basic fare would 



Decisions and Ad-ifstments of Complaints 165 

not draw any additional patronage which is contrary to the experience of 
the southern and western carriers in maintaining experimental rates." An 
up-to-the-minute confirmation of this position is the report on June 17, that 
the passenger earnings of the New York, New Haven and Hartford Railroad 
for the first week in June, 1936, compared with similar period a year ago, 
showed a drop of only one per cent, operations under new and old rates. 

In this case in the face of "threatened" loss of millions by the carriers, the 
Commission looked beyond the fear of the carriers and relying upon volume 
and economies, the factor which has been stressed by the opponents of the 
contention of the emergency charges, ordered reductions. 

Let us read from the dissenting opinion of Commissioner Aitchison: 

"I concur in the denial of the application of the rail carriers for au- 
thority to continue indefinitely the surcharges previously authorized as 
an emergency measure of relief. To the extent that those surcharges 
are eliminated on certain commodities and are abated on others, I con- 
cur. Such action is clearly in the right direction. But I dissent from 
the authorization of the continuance of the remaining emergency sur- 
charges beyond the expiration date already set, for any additional pe- 
riod of time, long or short, 

"The position I now take is clearly outlined in the earlier dissenting 
expressions of Commissioners Porter and Tate, and myself. Emer- 
gency Freight Charges, 1935, swpra, at pages 70, 63 and 65, respec- 
tively. While those expressions were separately stated, they were essen- 
tially a unit in indicating reasons why the surcharges should not have 
been imposed. The present supplemental record affords a test of the 
soundness of the views there expressed by my colleagues and myself 
and we now have before us the actual results of the operation of the 
surcharge plan for a period of more than a year. The basic objections 
recited in the dissenting expressions cited are now clearly shown to be 
sustained by experience. More cogently than before they forbid a re- 
newed approval of the surcharge system. It is and will be counter to 
the mandates of the Interstate Commerce Act, and even if lawful will 
defeat its own purpose by making the rail carriers more vulnerable to 
competition without even temporarily bettering their real condition. 

"The estimates submitted by the carriers indicating the gain from the 
surcharges as more than a hundred million dollars annually are wholly 
illusory. They make no allowance for intangible, but real losses sus- 
tained as a direct consequence of the surcharges imposed. Nor can such 
an annual rate be projected into the future as a dependable measure of 
what they will receive if the surcharges be continued. The record is 
replete with instances in which the shippers have endured the surcharges 
until now, in reliance upon the faith of our report and order which fixed 
a 1 mited period and generally Condemned the long continuance of such 
a system of rate making. It has been cheaper and less troublesome for 
them to be patient and forbearing than to go to the annoyance and ex- 
pense of altering their shipping facilities, now adapted to rail move- 
ments, to facilitate or permit future movements by truck or water at 
rates which are now more favorable than by rail. It is established by 
the record that further continuance of the surcharges will drive away 
from the rails many who have hitherto been good patrons, both because 
of savings in transportation costs to be realized, and out of resentment 
at a continuing effort to pile increasing burdens of transportation charges 
on traffic which is deemed to be captive to the rails. 

"The losses to the rail carriers resultant from too h^gh rates are not 
always obvious and are incapable of arithmetical calculation. But it ap- 
pears from this record that there are a number of recognized ways in 
which rail business is reduced by increases in rates. (1) The effect 



166 ]^. C. Utilities Commission 

may be to drive a given commodity movement between two points from 
rail to competing forms of transport between the same points. (2) The 
shipper may be compelled to substitute for long-haul rail traffic a shorter 
movement by rail, or (3) by motor or by water, or (4) to substitute a 
competing commodity not moving by rail, such as electric power or oil 
by pipe line or water. Then there may be (5) a total destruction of 
traffic without substitution or diversion, by reduction of consumption 
at the cost of increased discomfort. 

"These deleterious effects will be lessened as the time the surcharge 
increases remain in effect is shortened. The longer the surcharges go 
on the greater is the certainty that an increasing proportion of the traf- 
fic will leave the rails. But any substantial increase in freight rates 
tends to localize traffic, and thereby to reduce the ton-miles of service 
the railways sell, even if no tons are lost to them. The rails thus gain 
the amount of the surcharges, but lose the total amount of revenue at- 
tributable to tonnage diverted or destroyed, and perform a lesser amount 
attributable to tonnage diverted or destroyed, and perform a lesser 
amount of paying service for the traffic which is left. Long-distance 
traffic has always been the distinctive feature of the American railways. 
They regard it accurately as being the most desirable and profitable. 
From the public standpoint, a rate system which has permitted the great- 
est possible utilization of resources and development of industries and 
the free fiow of competitive commerce over the widest possible areas 
has been a distinct factor in the even development of all portions of the 
nation. 

"As was stated in the earlier expressions of dissent, the general level 
of freight rates is already as high as it can be without exceeding the 
bounds of reasonableness. Traffic cannot permanently bear a rate basis 
made by imposing surcharges, ranging up to as much as 10 per cent, 
upon the rate structures fixed by the Commission as maxima in compre- 
hensive and carefully considered decisions;^ and the present record 
abundantly shows that the classes of commodities subjected to the sur- 
charges cannot bear such increased costs for rail transport, permanently, 
or further endure them temporarily. With alternative means of trans- 
port available at lesser costs, traffic need not and will not bear such in- 
creased rail charges. 

"The effect must be, as it apparently has been, to make it more diffi- 
cult to secure rail revenues, both immediately and to even a greater de- 
gree in the long run. As was stated in my original expression, at page 66, 
supra, . . . the record is convincing that the result will be detri- 
mental to the interests of the carriers in that it will (a) place them in 
a more unfavorable position than they now occupy in a progressively los- 
ing warfare of competition with other forms of transport, or (b) tend 
to postpone the general revival of business activity of the carriers . . . 

"The present record is convincing that the so-called emergency charges 
have had exactly the result thus anticipated, and that a continuance of 
the surcharges will but emphasize the detrimental results to these ap- 
plicants. Instead of relieving the emergency situation found in the orig- 
inal report herein, the surcharges have prevented the rail carriers from 
attaining as favorable a revenue situation as they would now be in if the 
surcharges had never been imposed. 

"The Commission unanimously finds in the report before us that the 
applicants have not borne the burden of proof, placed upon them by law, 
of justifying the increased rates as being lawful, as a permanent or con- 
tinuing proposition. No other conclusion could properly be reached. 
These increases have been in effect since April 18, 1935, and unless per- 
mitted by the Commission to be continued, must expire on June 30, 1936. 



5 See cases cited in the dissenting expression of Commissioner Porter in the original re- 
port, ut supra, page 72 et seq. 



Decisions and Adjustments of Complaints 167 

But if they will be unreasonable on and after July 1 for an indefinite 
period, it is difficult to see how they can be reasonable for any portion of 
that period. Certainly there is nothing in the present record which indi- 
cates a basis for such a differentiation, or which suggests six months as 
being so set off that we can say the surcharges will be just and reason- 
able during that period but not thereafter, and that the rail carriers 
must not expect them to be further continued. The applicants were care- 
ful not to make out such a case. The facts which indicate unlawfulness 
from and after July 1 for an indefinite period likewise show illegality 
for the six months beginning with that date. 

"The record is replete with instances of maladjustment and positive 
unjust discrimination between persons, places and localities, which are 
the natural consequence of a system of surcharges imposed upon the 
existing rate structure without special consideration being possible be- 
cause of the emergency character of the initial proceeding. We know 
such a system of surcharges inevitably brings about confiicts and dis- 
parities between interstate and State rates which can only be resolved 
by proceedings before us wherein the State rates, made by local authori- 
ties in the exercise of lawful powers and in the light of their own local 
needs, are superseded by Federal authority. These conflicts of authority 
engender ill will, and the proceedings before us are often futile because 
the disparities, while shown to exist, are not made to appear so clearly 
in violation of the Federal law that we are warranted in disturbing 
them, particularly when the interstate rates have but a brief life before 
they are scheduled to expire. In many cases the carriers acquiesce in 
such disparities, and for like reasons a proceeding by shippers or locali- 
ties injuriously affected would be futile. The effect is the same. In this 
proceeding the constituted authorities of thirty-three States have taken 
a position formally in opposition to the continuance of the surcharges. 
There is real reason for apprehending that the disparities which the rec- 
ord shows now exist between State and interstate rates will be increased 
by the action now being taken. As was frankly stated in the original 
report in this proceeding (page 62), and as is repeated in the foregoing 
report, 'such increases as are now proposed are an inadequate and dan- 
gerous method of meeting these new problems.' 

"The inherent discrepancies have been made even more vicious by 
the lack of continued general application of such surcharges. The rail 
carriers point to literally innumerable instances in which they have 
scaled down or eliminated the general nation-wide surcharges permitted 
by the Commission, to enable them to get or retain business, and they 
announce of record their intent to continue this practice. The record 
shows that many of these reductions have had as their motivation a 
yielding to the big stick of large tonnage controlled by shippers power- 
ful enough to enforce their demands. This form or exercise of 'man- 
agerial discretion' has demonstrably increased the inequality in charges 
as between those so reduced for the fortunate and those borne by the re- 
maining shippers, whose lack of power compels them to look to us to 
secure them the equality which the Interstate Commerce Act was de- 
signed to make universal. Continuance of these surcharges as such, and 
of the managerial policy of reducing or eliminating them according to 
the apparent ability of the shipper to make good his threats to divert 
tonnage, will inevitably still further increase the inequalities now exist- 
ing and make our own rate adjustments even more obsolete and useless 
than they now seem to be. I am not able to join in an abdication of the 
duties and powers of the Commission under the law in favor of such 
kind of managerial discretion. 

"The surcharge method employed, and which is to be continued, as a 
matter of rate publication is extremely complicated, inconvenient, and 
unnecessarily confusing. It is often impossible for a shipper to know 
his rate without a search of tariff files involving an unreasonable amount 



168 ]^. C. Utilities Commission 

of labor. This itself tends to drive traffic to competing transport systems 
which operate under simpler systems of rate statement, and thereby de- 
prives the rail carriers not only of amounts equal to the surcharges, but 
the whole gross revenue which would have been received from the di- 
verted traffic." 

This Commission is of the opinion that uniformity in interstate and intra- 
state regulation is highly desirable, but it cannot consent to any uniformity 
that is not based on merit and which, in our opinion, would defeat the very 
ends for which it was designed. 

In attempting any uniformity this Commission cannot follow a procedure 
that blows hot and cold like the shifting of a weather vane. 

In the right about face of the Interstate Commerce Commission in this 
case compared with the passenger fare case, practically in principle on all 
fours with each other, it is enough to make those looking for consistency, 
marvel. 

In denying the instant petition, in order which follows, the Commission is 
relying on the sound and wholesome reasons advanced by the agencies which 
opposed the original petition before the Interstate Commerce Commission, 
its own arguments presented in its brief before the Interstate Commerce 
Commission and petitions of the North Carolina shippers in protest to the 
continuation of the charges on intra-state traffic in North Carolina filed by 
shippers with this Commission. 

This Commission is fully convinced that the continuation of the charges 
beyond June 30, 1936, is unwarranted. Furthermore it is the candid belief 
of this Commission that the discontinuance of this burdensome surtax will 
not only be of benefit to the public but a benefit to the railroads themselves. 

It is not higher rates but volume that the carriers need to bring about a 
more favorable parity between revenue and outgo. Without an increased 
volume the rail carriers are doomed to ultimate bankruptcy. 

High rates operate as a two-edged sword. It is true that they produce a 
greater amount of revenue for business handled but at the same time, it 
must not be overlooked that they shrink volume by localizing business and 
by a division of traffic with competitors. It must be apparent to any student 
of transportation that high rates are the greatest stumbling blocks to ex- 
pansion of business. It localizes trade, thus defeating the means upon which 
the success of the carriers depend — the free and extended movement of com- 
modities between widely separated areas. 

The carriers in the present issue of freight transportation are facing the 
same situation they faced years ago when passenger motor carriers became 
successful competitors and if the carriers are permitted to pursue this same 
policy they will commit the slme disastrous blunder they made at that time. 
Their passenger business was well-nigh destroyed before the southern and 
western carriers relinquished their fallacious position and resorted to low 
fares to increase their volume and recoup their business, which proved de- 
cidedly successful. 

The Interstate Commerce Commission in its eastern passenger fare deci- 
sion heretofore referred to took cognizance of this noteworthy experience 
and put an end to the carriers suicidal policy. 

The suicidal policy of the carriers in the present case strikes one in the 
face with equal force as that of their passenger experience. 



Decisions and Adjustments of Complaints 169 

In the matter of short-haul traffic the motor trucks have largely superseded 
the railways and they are likewise making heavy inroads in long-haul busi- 
ness. The motor truck carriers have already adopted the railway rates minus 
the surcharges. This competition cannot be overlooked. 

As far as North Carolina is concerned the maximum level of regular rates 
now in effect, is, in the judgment of this Commission, higher than it should 
be and this surtax, an irritating and additional burdensome factor, cannot 
be countenanced for a long period than that for which the privilege was 
granted, June 30, 1936. 

On North Carolina intra-state traffic there are many instances where the 
existing rates are higher than the maximum reasonable rates and where the 
application of the emergency charges would discriminate against North Caro- 
lina intra-state traffic in competition with interstate traffic. In Docket 21665, 
to become effective July 29, 1936, there will be a reduction of intra-state rates 
between Virginia and North Carolina to a lower level than the 13494 scales 
now applicable between points in North Carolina. 

Too, considering only the present class rates within North Carolina and 
the class rates between Virginia on the one hand and North Carolina on the 
other, both rates being the 13494 level, there is a discrimination against 
North Carolina shipper in preference to the Virginia shipper. To illustrate, 
there is an emergency charge on less than carload class traffic from Asheville, 
N. C, to points in North Carolina, such as Hillsboro, Durham, Raleigh, Wil- 
son, Greenville, Goldsboro, Morehead City, Fayetteville and Sanford, but no 
emergency charge from Richmond Va., to these same points. This, of course, 
puts Asheville at a disadvantage in competing with Richmond. It may be 
argued that in the first place the rates from Asheville to these points are 
higher than from Richmond due to the distances being greater and that the 
Asheville shipper now absorbs the difference in the freight rates to meet 
such competition. This is perhaps true but with the emergency charge to be 
added the Asheville shipper must also absorb same in order to compete or 
go out of the business. Illustration upon illustration of similar character 
could be cited. 

On knit goods and towels, commodity rates apply generally from North 
Carolina to Virginia and in many instances from Vi7'ginia into North Caro- 
lina via rail whereas rates via motor truck are published on basis of 75 per 
cent of first-class not subject to any emergency charge while the railroad rate 
within North Carolina, even without the emergency charge, is 100 per cent 
of the first-class rate. Obviously the addition of the emergency charges would 
increase discrimination against the North Carolina shippers. 

The petition has advanced no sound reason or argument for the continu- 
ance of the surcharge, but on the contrary, it is patent to this Commission 
that such charges are unwarranted in that they compound regular rates which 
are already excessively high and that in their applicability they constitute 
an undue discrimination, especially true in North Carolina, forbidden by 
the acts of Congress and the laws of North Carolina. 

Should the point be raised by the petitioner or some dissatisfied critic that 
this Commission, in the matter of intra-state application, should follow the 
action of the Interstate Commerce Commission on the grounds of uniform- 
ity, such point would fall flat for the reason that such action would make 
only for "paper" uniformity because as has been heretofore pointed out, there 



170 ]N^. C. Utilities Commission 

is no uniformity in the application of tlie cliarges. Tlie Interstate Commerce 
Commission is prolific in pointing out these discriminations. If we were 
to admit for argument's sake that an emergency does exist, the existence of 
which is strongly debatable, it is manifestly improper and unlawful to em- 
ploy any method or agency to meet this situation that produces discrimina- 
tion or even breeds unfair rate relationships, a thing which is probably con- 
demned by law above every other practice. 

It must, therefore, be apparent to the logical thinker that in the order of 
this Commission, which follows, this Commission is on solid ground. In view 
of the 1932 application, following investigation by the Interstate Commerce 
Commission, under Ex Parte 103, this Commission, after refusing extension 
of those charges beyond March 21, 1933, on intra-state traffic in North Caro- 
lina, took no further action after the Interstate Commerce Commission, upon 
complaint of the railroads under Thirteenth Section of the 'Interstate Com- 
merce Act, ordered the railroads to apply these emergency charges on North 
Carolina intra-state traffic. In other words, this Commission yielded in the 
fact of its better judgment, being constrained to do so in the cause of har- 
mony, in deference to the judgment of the Interstate Commerce Commission, 
and a sincere desire to promote transportation prosperity among the rail 
carriers. 

But that is water over the dam. However, it forms a fine background for 
action today, which, with now existing conditions, gives us a proper basis 
for action. The present conditions preclude any successful arbitrary resort 
to Thirteen Section action. An instrument that is so. honey-combed with 
discriminations — discriminations the question of which is removed from the 
realm of speculation by actual operation and the testimony before the In- 
terstate Commerce Commission — cannot be, as we see it, arbitrarily imposed 
upon a State Commission which opposes it. 

As this Commission has never given any formal expression on the applica- 
bility of Thirteen Section powers, the Commission believes that it would be 
pertinent at this time to discuss, briefiy, this phase of regulation which, in 
the past in certain instances, has been used to strip State Commissions of 
their sovereign powers and make of them, as it were, a mere shadow of an 
emasculated reality. 

As relates to commerce, the United States Constitution reads as follows: 

"The Congress shall have power to regulate commerce with nations, 
and among the several states, and Indian tribes." 

This does not give Congress the right to pass any law regulating commerce 
wholly within a state and it is exceedingly doubtful that Congress has the 
right to vest super-rights in any agency it may establish where there is ap- 
parent conflict in interstate and intra-state matters. If this were true then 
the interstate body by indirection could nullify what it is precluded from 
doing directly. This point is clearly emphasized in the decision of the United 
States Supreme Court which follows where it says: . . . otherwise, as 
we have said, there would be virtually no limit to Federal power, and for all 
practical purposes we would have a completely centralized government." 

While it is true that no particular state can make its rates so low as to 
result in a discrimination in favor of its intra-state shippers against inter- 
state shippers, it is equally as true that the Interstate Commerce Commission 



Decisions and Adjustments of Complaints 171 

cannot fix rates and arbitrarily impose them upon the several states which 
create a discrimination in favor of interstate shippers against intra-state 
shippers. 

Where such conflicts of judgments and administration arise, the only rem- 
edy open is to the courts of the land. 

This Commission realizes that where there is conflict between interstate 
and intra-state interests that it is essential that these differences be smoothed 
out. However, there is only one way that these differences should be settled 
and this by the strict application of merit in each case at issue. 

Any arbitrary blanket action by the Interstate Commerce Commission in 
purely intra-state matters, the courts have pointed out, is clearly without 
warrant of law. The jurisdiction of the Interstate Commerce Commission 
over intra-state rates, the courts have pointed out, arises only when individ- 
ual cases of conflicting interests arise, and when such cases arise in which 
the jurisdiction of this Commission is involved they will be met by this 
Commission in the spirit of cooperation and not hostility. 

In the case of Schechter Poultry Cooperation, et al., vs. United States be- 
fore the United States Supreme Court, decided May 27, 1935, declaring the 
National Recovery Act unconstitutional on the grounds of violating state 
sovereignty the Court, in the course of its decision, said: 

"In determining how far the Federal Government may go in control- 
ling intra-state transactions upon the ground that they 'affect' interstate 
commerce, there is a necessary and well-established distinction between 
direct and indirect effects. The precise line can be drawn only as in- 
dividual cases arise, but the distinction is clear in principle. Direct 
effects are illustrated by the railroad cases we have cited, as, e.g., the 
effect of failure to use prescribed safety appliances on railroads which 
are the highways of both interstate and intra-state commerce, injury to 
an employee engaged in interstate transportation by the negligence of 
an employee engaged in an intra-state movement, the fixing of rates for 
intra-state transportation which unjustly discriminate against interstate 
commerce. But where the effect of intra-state transactions upon inter- 
state commerce is merely indirect, such transactions remain within the 
domain of State power. If the commerce clause were construed to reach 
all enterprises and transactions which could be said to have an indirect 
effect upon interstate commerce, the Federal authority would embrace 
practically all the activities of the people, and the authority of the state 
over its domestic concerns would exist only by sufferance of the Federal 
government. Indeed, on such a theory, even the development of the 
State's commercial facilities would be subject to Federal control. As 
we said in Simpson vs. Shepard (Minnesota Rate Case), 230 U. S. 352, 
410, 33 S. Ct. 729, 745, 57 L. Ed. 1511, 48, L. R. A. (N. S.) 1151, Ann. Cas. 
1916A, 18. 'In the intimacy of commercial relations, much that is done 
in the superintendence of local matters may have an indirect bearing 
upon interstate commerce. The development of local resources and the 
extension of local facilities may have a very important effect upon com- 
munities less favored, and to an appreciable degree alter the course of 
trade. The freedom of local trade may stimulate interstate commerce, 
while restictive measures within the police power of the State, enacted 
exclusively with respect to internal business, as distinguished from in- 
terstate traffic, may in their reflex or indirect influence diminish the 
latter and reduce the volume of articles transported into or out of the 
State.' See also Kidd vs. Pearson, 128 U. S. 1, 21, 9 S. Ct. 6, 32 L. Ed. 346; 
Heisler vs. Thomas Colliery Co., 26 U. S. 245, 259, 260, 43 S. Ct. 83, 67 
L. Ed. 237. 



172 ]^. C. Utilities Commission 

"The distinction between direct and indirect effects has been clearly 
recognized in the application of the Anti-Trust Act. Where a combina- 
tion or conspiracy is formed, with the intent to restrain interstate com- 
merce or to monopolize any part of it, the violation of the statute is 
clear. Coronado Coal Company vs. United Mine Workers, 268 U. S. 295, 
310, 45 S. Ct. 551, 69 L. Ed. 963. But, where that intent is absent, and the 
objectives are limited to intra-state activities, the fact that there may 
be an indirect effect upon interstate commerce does not subject the par- 
ties to the Federal statute, notwithstanding its broad provisions. This 
principle has frequently been applied in litigation growing out of labor 
di>putes. United Mine Workers vs. Coronado Coal Company, 259 U. S. 
344, 410, 411, 42 S. Ct. 570, 66 L. Ed. 975, 27 A. L. R. 762; United Leather 
Workers' International Union vs. Herkert, 265 U. S. 457, 464-467, 44 S. 
Ct. 623, 68 L. Ed. 1104, 1104, 33 A. L. R. 566; Industrial Association vs. 
United States, 268 U. S. 64, 82, 45 S. Ct. 403, 69 L. Ed. 849; Levering & 
Garrigues vs. Morrin, 289 U. S. 103, 107, 108, 53 S. Ct. 549, 551, 77 L. Ed. 
1062. In the case last cited we quoted with approval the rule that had 
been stated and applied in Industrial Association vs. United States supra, 
after review of the decisions as follows: 

'The alleged conspiracy, and the acts here complained of, spent 
their intended and direct force upon a local situation — for build- 
ing is as essentially local as mining, manufacturing or grow- 
ing crops — and if, by resulting diminution of the commercial de- 
mand, interstate trade was curtailed either generally or in spe- 
cific instances that was a fortuitous consequence so remote and 
indirect* as plainly to cause it to fall outside the reach of the 
Sherman Act (15 USCA 1-7, 15 note).' 

"While these decis^ions related to the application of the Federal stat- 
ute, and not to its constitutional validity, the distinction between direct 
and indirect effects of intra-state transactions upon interstate commerce 
must be recognized as a fundamental one, essential to the maintenance 
of our constitutional system. Otherwise, as we have said, there would 
be virtually no limit to the Federal power, and for all practical pur- 
poses we would have a completely centralized government. We must 
consider the provisions here in question in the light of this distinction." 

We also quote from the celebrated Florida Log Case (282 U. S. 194) decided 
by the United States Supreme Court, January 5, 1931: 

"The question in the present cases, then, is not one of authority, but 
of its appropriate exercise. The propriety of the exertion of the author- 
ity must be tested by its relation to the purpose of the grant and with 
suitable regard to the principle that, whenever the Federal power is 
exerted within what would otherwise be the domain of State power, the 
justification of the exercise of the Federal power must clearly appear. 
Illinois Central Railroad Co. vs. State Public Utilities Commission, supra. 
The Commission has no general authority to regulate intra-state rates, 
and the mere existence of a disparity detiveen particular rates on intra- 
state and interstate traffic does not icarrant the Commission in prescrit)- 
ing intra-state rates. Arkansas Railroad Commission vs. Chicago, Rock 
Island & Pacific Railway Co., supra. If the action of the Commission is 
not simply for the removal of undue prejudice against interstate com- 
merce as between persons or localities, and the Commisson undertakes 
to prescribe a State-wide level of intra-state rates in order to avoid an 
undue burden, from a revenue standpoint, upon the interstate carrier, 
there should be appropriate findings upon evidence to support an order 
directed to that end. Thus, in Railroad Commission of W.sconsin vs. 
Chicago, Burlington & Quincy Railroad Co., supra, at page 566 of 257 
U. S., 42 S. Ct. 232, where the question related to the general level of 
intra-state passenger fares, there were findings as to the effect of the 
maintenance of the intra-state fares upon the revenues of the carriers. 



Decisions and Adjustments of Complaints 173 

warranting the ultimate finding of undue discrimination against inter- 
state commerce as a whole. Similar facts were shown in New York vs. 
United States, supra, at page 601 of 257 U. S., 42 S. Ct. 232. In the pres- 
ent instance, the Commission did not undertake to establish a State-wide 
level of rates for the interstate transportation of logs, and, in order to 
sustain the State-wide order as to intra-state rates (as one need to 
avoid an undue burden on the revenues of the carrier and a consequent 
interference with the maintenance of an adequate transportation sys- 
tem), it must appear that there are findings, supported by evidence, of 
the essential facts as to the particular traffic and revenue, and the effect 
of the intra-state rates, both as existing and as prescribed, upon the in- 
come of the carrier, which would justify that conclusion. 

"In the paragraph, which we have quoted, containing the ultimate find- 
ing of the Commission with respect to the unjust discrimination caused 
by the existing intra-state rates as between persons and localities, there 
is a concluding clause that the intra-state rates result 'in unjust dis- 
crimination against interstate commerce.' This general statement in 
the language of the statute, neither standing alone nor taken in its con- 
text, could be regarded as sufl^cient to support a State-wide order from 
the standpoint of income, in the absence of supporting findings of fact 
as to the revenue from the traflSc in question. 

"In its report, the Commission stated that the Florida Railroad Com- 
mission, and the interveners from that State, had contended that the in- 
trastate rates were remunerative to the carrier. The State Commission 
introduced a cost study to support its contention, and the carrier also 
submitted evidence as to the cost of transporting logs on its line. The 
Interstate Commerce Commission said that both cost studies were based 
on 'arbitrary assumptions' and that neither could be accepted 'to show 
the approximate actual cost of transporting logs in single carloads in- 
tra-state throughout Florida.' The Commission made a comparison of 
'present interstate and intra-state rates and the proposed interstate rates 
from north Florida in cents per 100 pounds, and the earnings thereun- 
der per car of 50,000 pounds for distances to 170 miles.' The 'earnings' 
thus set forth were merely the amounts receivable per car for the given 
number of pounds under the rates for the prescribed distances. The 
Commission also stated that the carrier had shown that the earnings 
under the Florida intra-state rates on logs were materially lower than 
the earnings under the interstate rates from Florida to Georgia on brick, 
sand, lime and cement. Comparing the Florida intra-state rates on logs 
with other intra-state rates and with interstate rates, the Commission 
reached the conclusion that the intra-state rates assailed were less than 
reasonably compensatory. 

"But to justify the Commission in the alteration of intra-state rates, 
it was not enough for the Commission merely to find that the existing 
intra-state rates on the particular traffic were not remunerative or rea- 
sonably compensatory. The authority to determine the reasonableness 
per se of intra-state rates lies ivith the State authorities and not ivith 
the Interstate Commerce Commission. In dealing with unjust discrim- 
ination as between persons and localities in relation to interstate com- 
merce, the question is one of the relation of rates to each other. In con- 
sidering the authority of the Commission to enter the State field and to 
change a. scale of intra-state rates in the interest of carriers' revenue, 
the question is that of the relation of rates to income. The raising of 
rates does not necessarily increase revenue. It may in particular locali- 
ties reduce revenue instead of i^icrea^ing it, liy discouraging patronage. 
Railroad Commission of Wisconsin vs. Chicago, Burlington & Quincy 
Railroad Co., supra. The Commission stated in its report that witnesses 
for the Florida interveners had testified 'that any material increase in 
the Florida intra-state rates would either cause them to move the"r plants 
to the timber or abandon operations', and that in either event the carrier 
would lose considerable traffic. 



174 'N. C. Utilities Commission 

In the face of decision after decision of the United States Supreme Court 
in chopping down Congressional legislation which interfered with State sov- 
ereignty, the unconstitutionality of certain provisions of Section 13 grow 
apparently more glaring. 

The truth is, the provisions of this section were the produce of a day 
when States' Rights had been driven to the storm cellar or regarded as a 
myth. 

It is worthy of note that in the National Motor Carrier Act, 1935, there 
is an absence of this unconstitutional provision. 

The same is true of the Federal Communications Commission which took 
over the control of telephone and telegraph companies which had been under 
the jurisdiction of the Interstate Commerce Commission. The arbitrary pro- 
visions in the Interstate Commerce Act, which had had a tendency to over- 
ride and nullify State regulation, were omitted and the right of State regu- 
lation in intra-state affairs protected and emphasized. 

In conclusion the Commission again wants to emphasize its attitude in 
opposing a further continuation of the said emergency charges and to re- 
peat that its only purpose in providing for their immediate discontinuance 
is its sincere desire to prevent further crippling of the industrial life of this 
State and the shipping interest generally, causing loss of profits to the ship- 
pers and, at the same time, a resulting loss of revenue to the railroads. 

It is significant to note that where petitions have been approved for the 
continuation of these emergency charges at this time by several southern 
states, that they have been approved with certain exceptions on traflBc mov- 
ing wholly within their respective states and it is our belief that these ex- 
ceptions embrace the more important commodity movements, leaving only 
the unimportant traffic upon which emergency charges are applied, and ex- 
empting traffic moving on percentage under normal rates and exempting traf- 
fic where the rates have been reduced to meet motor truck competition. 

This Commission, by following the course of procedure pointed out above, 
could easily, by making copious exceptions, embracing the principal com- 
modity movements in intra-state traffic, approve the petition before us, but 
to do so would make our action only a mockery and a farce, and in its final- 
ity would serve no good purpose, and would result in discrimination and an 
unfair burden on some few commodities upon which the emergency charges 
would actually apply. 

It is, therefore, ordered. That the petition seeking continuation of the 
emergency charges on North Carolina intra-state commerce for a period of 
six months, terminating with December 31, 1936, be, and the same is hereby 
denied and dismissed. 

This 30th day of June, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, CMef Clerk Commissioner. 

(Seal) Docket No. 191. 



Decisions and Adjustments of Complaints 175 

IN THE MATTER OF APPLICATION NO. 66 OF J. E. TILFORD, CHAIR- 
MAN SOUTHERN FREIGHT ASSOCIATION, SEEKING AUTHORITY 
TO CANCEL MILEAGE CLASS RATES FOR DISTANCES 150 MILES 
AND LESS WITHIN NORTH CAROLINA. 

Order 

Application No. 66 of Chairman Tilford, dated September 17, 1934, seeks 
authority of our Commission to cancel mileage class rates for distances 150 
miles and less within the State and apply group basis of rates. The applica- 
tion also includes certain commodity rates carried in Agent Speiden's Tariffs 
227-B, 214, 16-U, 196-C, 243-B and 257. The carriers' purpose as stated is to 
cancel mileage scale sections which now provide distance scales for applica- 
tion between points 150 miles and less where grouping in Southern Rate 
Basis is made inapplicable by reference marks in connection with rate basis 
numbers. 

Copies of the application were served upon the traffic organizations of the 
State and hearing thereon was held at the Commission's offices at Raleigh 
on January 17, 1935. All parties whom we thought might be interested were 
duly notified. Mr. Carl R. Cunningham, Traffic Manager, N. C. Cotton Man- 
ufacturers' Association, Atlanta, Ga., appeared. Upon hearing carrier's tes- 
timony he offered no objection. 

Mr. R. G. Hodgkin, Assistant Freight Traffic Manager, Atlantic Coast Line 
Railroad Company, Wilmington, N. C, appeared on behalf of all carriers of 
the State and testified in effect that when the Southern rate scale (Docket 
13494) was installed, the order stated reasonable origin and destination 
grouping would be permitted. The carriers thereupon adopted a grouping 
plan of publication. Certain points, generally junction points and 
the more populous local stations, were arbitrarily selected as base points. 
Adjacent local stations were grouped with stations which had been selected 
as base points. Groups so framed did not as a rule exceed approximately 
20 miles in width. Provision was made for literal application of mileage 
scales for distances up to 150 miles, the group plan having been employed 
generally for determination of joint haul rates regardless of distance. 

If a grouping of origins and destinations is not considered improper for 
hauls of over 150 miles there appears no good reason for objecting to a sim- 
ilar grouping plan in determining rates for shorter distances. The main 
purpose sought to be accomplished is simplification so that both railroad em- 
ployees and shippers may, in every instance, easily determine what the rates 
are. 

Due to motor truck competition and the general depression the volume 
of less than carload merchandise business is only a small part of what car- 
riers once had. During 1927 Mr. Hodgkin said the Atlantic Coast Line Rail- 
road handled 469,606 tons of less than carload freight in North Carolina. 
In 1933 it handled 248,323 tons. In 1927 the Atlantic Coast Line handled 
113,114 tons of less than carload freight originating on its lines in North 
Carolina while in 1933 it originated only 31,034 tons. 

Mr. Hodgkin testified further: 

"I am presenting this explanation of Mr. Tilford's application of all 
the North Carolina rail carriers and not for the Atlantic Coast Line in 
particular. The only purpose of the plan here presented is as I have 



1 ' 6 ^. C. Utilities Commission 

already stated— to simplify the method of publication of rates so that 
those who use the tariffs may find it easier to determine what rates ac- 
tually are and incidentally to make a savings of expense in printing." 

The Commission is of the opinion and so finds that the application on the 
whole means very little change in rates; that while there will of course be 
some increases there will as often occur reductions and, therefore, the changes 
should pretty well balance each other, and in view of the explanation given, 
the application principally means sufficient adjustment of rates to enable 
adoption of the grouping plan which has been found to work for all distances 
over 150 miles. 

It is, therefore, ordered. That Application No. 66 of Chairman Tilford, 
dated September 17, 1934, be and the same is hereby approved. 

This 26th day of February, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

(Seal) Docket No. 208. 

IN RE: APPLICATION NO. 95 OF J. E. TILFORD, CHAIRMAN, SOUTH- 
ERN FREIGHT ASSOCIATION, TO REVISE LESS CARLOAD RATES 
ON RAILWAY TRACK MATERIAL WITHIN NORTH CAROLINA. 

Order 
Hearing on the above application was held in the Commission's courtroom 
before Commissioner Winborne at Raleigh, Tuesday, November 19, 1935, with 
the following carrier representatives present: 

J. B. McMahon, Southern Railway, Washington, D. C. 
W. T. Wenke, Atlantic Coast Line, Wilmington, N. C. 
G. T. Ward, Seaboard Air Line Railway, Norfolk, Va. 

The application seeks to establish sixth class rates on rails and railway 
track material, less carload, within North Carolina in lieu of present com- 
modity rates shown in Agent Pope's Tariff No. 629-A. It appears these rates 
were established by order of this Commission, effective September 1, 1929, 
and included carload rates. Effective June 15, 1935, the carload rates were 
cancelled by authority of our order, dated May 23, 1935, and the interstate 
scale now applies on North Carolina intra-state traffic. 

The application states it is designed to bring the present intra-state com- 
modity rates in harmony with adjustment applying on interstate traffic and 
intra-state traffic in all Southern States except Alabama, North Carolina, 
South Carolina and Virginia. Petitions are pending in those states. Appli- 
cant testified as follows: "We have made a careful investigation through 
our Division Officers as to the less than carload movement of rails and rail- 
way track material but our investigation failed to develop any movement 
during the past year. We also wrote the other North Carolina lines to de 
velop the extent of the movement and their replies all indicate that there is 
no movement." 

In view of what was stated by the carriers, the Commission is of the opin- 
ion that the application should be granted, and 

It is, therefore, ordered. That Application No. 95 of J. E, Tilford, Chair- 
man, Southern Freight Association, seeking to withdraw paper rates on rails 



Decisions and Adjustments of Complaints 177 

and railway track material and apply in lieu thereof the regular sixth class 
rates, it being understood from testimony adduced at hearing there is no 
movement within the State, the withdrawal may be made effective Novem- 
ber 1, 1936. 

This 6th day of October, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 386. 

IN THE MATTER OF APPLICATION OF SOUTHERN FREIGHT ASSO- 
CIATION, ATLANTA, GA., FOR AUTHORITY TO ESTABLISH TRUCK 
COMPETITIVE RATES ON GASOLINE, INCLUDING BLENDED 
GASOLINE, AND KEROSENE, FROM WILMINGTON, NORTH 
CAROLINA 

Interlocutory Order on Petition of Petroleum Truck Operators for 
Postponement of Hearing 

Now come the Quality Oil Company, Winston-Salem, N. C; Royster 
Oil Company, Shelby, N. C; Washburn Oil Company, Shelby, N. C. ; 
Wachovia Oil Company, Winston-Salem, N. C; Marine Oil Company, 
Winston-Salem, N. C; Thompson-Wooten Oil Company, Goldsboro, N. C; 
Mecklenburg Oil Company, Charlotte, N. C; Central Oil Company, Greens- 
boro, N. C; Southern Oil Company, High Point, N. C; Coastal Oil Com- 
pany, New Bern, N. C; Rogers Oil Company, Raleigh, N. C; H. H. Elder 
Company, Siler City, N. C; R. B. Boren Oil Company, Greensboro, N. C, 
and United Oil Company, Salisbury, N. C, through their Attorneys, Par- 
rish & Deal of Winston-Salem, N. C, and formally show to the Commis- 
sion by petition dated July 11 and filed July 13, 19 3 5, that they and 
each of them are engaged in the transportation of petroleum products 
by truck from the City of Wilmington to various points in North Carolina, 
and are vitally interested and opposed to the reduction in rates on gaso- 
line, including blended gasoline, and kerosene, as set out in the applica- 
tion of the Southern Freight Association dated June 19, 1935, which has 
been presented to the Commission for approval, upon which application 
hearing has been set by the Commission for July 23, 1935. 

The said petitioning trucking companies further show to the Commis- 
sion that notice of the hearing on the application of the Southern Freight 
Association was issued on the 9th day of July, 1935, and the said trucking 
companies contend that in order to properly present their protests to the 
Commission it will require a large amount of detailed preparation which 
they contend cannot be properly completed in time for the hearing on 
the 23rd day of July, 1935, and for these reasons the trucking companies 
ask that the hearing be postponed until October 23, 1935. 

Upon full consideration of the petition asking for a continuance and 
also upon consideration of the fact that the interstate rates will become 
effective on August 15, 19 3 5, this Commission is of the opinion that 
while it desires to give all time that is reasonable in order for the trucking 
operators to present their protests to this Commission that it would not 
be wise to postpone the hearing before this Commission beyond the date 



178 JSr. C. Utilities Commission 

fixed by tariff publication for the interstate rates to become effective, for 
the reason that the interstate reductions, if they become effective on 
August 15, 1935, will apply to petroleum shipments from points in South 
Carolina and Virginia which are competitive with Wilmington to points 
in North Carolina and, therefore, definite action should be taken by this 
Commission either approving or disapproving said rates prior to the 15th 
day of August, 1935. 

Wherefore, This Commission declines protestants' petition to postpone the 
hearing until October 23, 1935, but does hereby extend the date of the 
hearing on the application of the Southern Freight Association for author- 
ity to establish truck competitive rates on gasoline, including blended 
gasoline, and kerosene, from July 23, 1935, to Thursday, August 8, 1935, 
at 10:00 o'clock, a. m., in the hearing room of the Commission at Raleigh, 
which date will be prior to the date interstate rates become effective 
under the interstate tariff. 
This 15th day of July, 1935. 

By order of the Commissioner. Stanley Winborne, 

Attest: Commissioner. 

(Seal) R. O. Self, Chief Clerk. 

Docket No. 446. 

IN THE MATTER OF APPLICATION OF SOUTHERN FREIGHT ASSO- 
CIATION, ATLANTA, GEORGIA, THROUGH CHAIRMAN J. E. TIL- 
FORD, FOR AUTHORITY TO ESTABLISH TRUCK COMPETITIVE 
RATES ON GASOLINE, INCLUDING BLENDED GASOLINE, AND 
KEROSENE, FROM WILMINGTON, N. C, TO NORTH CAROLINA 

POINTS 

Order 

Protest to the granting of the foregoing application was duly filed by the 
following respondents: 

The Quality Oil Company, Winston-Salem, N. C. 
Royster Oil Company, Shelby, N. C. 
Washburn Oil Company, Shelby, N. C. 
Wachovia Oil Company, Winston-Salem, N. C. 
Marine Oil Company, Winston-Salem, N. C. 
Thompson-Wooten Oil Company, Goldsboro, N. C. 
Mecklenburg Oil Company, Charlotte, N. C. 
Central Oil Company, Greensboro, N. C. 
Southern Oil Company, High Point, N. C. 
Coastal Oil Company, New Bern, N. C. 
Rogers Oil Company, Raleigh, N. C. 
H. H. Elder Company, Siler City, N. C. 
R. B. Boren Oil Company, Greensboro, N. C. 
United Oil Company, Salisbury, N. C. 

This cake came on to be heard and was heard before the undersigned 
Commissioner alone on August 8, 1935, in the hearing room of the 
Utilities Commission in the City of Raleigh upon petition of the various 
railroads of the State asking the approval of the Commission of reduction 
in rates on gasoline, including blended gasoline, and kerosene, from 
Wilmington to various North Carolina points as set forth in application 
of Chairman J. E. Tilford filed with the Commission. 



Decisions and Adjustments of Complaints 179 

The petitioners and especially the Atlantic Coast Line Railroad Com- 
pany, and the Seaboard Air Line Railway (L. R. Powell, Jr., and Henry 
W. Anderson, Receivers), were represented by Mr. Murray Allen, Attorney 
of Raleigh, N. C. 

Protestants were represented by Messrs. Parrish and Deal, Attorneys, 
Winston-Salem, N. C. 

On the same day and just before the case was called for hearing the 
Protestants, through their attorneys, Messrs. Parrish and Deal, of Win- 
ston-Salem, filed with the Commissioner a written motion asking that 
the case be heard by the full Commission, for the reason that there was 
more than $3,000 involved. This motion was overruled and the protes- 
tants excepted. 

In the opinion of the Commissioner the motion was made too late to be 
allowed. While Section 10 of Chapter 134 of the Public Laws of 1933 
provides that where the amount involved in any controversy shall be 
$3,000 or more, upon request of any party to the proceeding the Com- 
missioner shall notify the associate commissioners to sit with him for 
the purpose of hearing and determining such matters or issues of fact. 
The same statute further provides that the Commissioner shall give ten 
days' notice to the associate commissioners of the time and place of such 
hearing. Considering these two provisions together and construing them 
in the light of reason it must follow that a request for the full commis- 
sion shall be made in time for the commissioner to give notice to the 
associate commissioners as required by the statute. If this were not true 
then any party to an action desiring to delay a determination of same 
could wait until the case was called, or even during the process of the 
hearing, when it appeared that the case was not progressing as desired, 
then demand the full commission and work a postponement of the 
hearing. 

Furthermore, during the progress of the hearing it was not developed 
that there was any amount involved, except the suggestion that if the 
reduced rates were allowed as asked for by the petitioners there would 
result a considerable curtailment in motor truck operations and that the 
State would thereby lose a large amount of tax revenue which it now 
receives on gasoline consumed by operation of motor trucks. While the 
item of tax revenue is one of prime importance to the State, in passing 
upon questions of rates the effect that reductions in rates would have upon 
the tax revenue of the State cannot be properly considered in determining 
what are fair and equitable rates. It always follows that where utility 
rates are reduced, tax revenue from the utilities are likewise reduced 
and the Commission is charged with the finding of what are fair and just 
rates regardless of what effect it may have upon the tax revenues of the 
State. 

The Protestants' motion for the full commission having been denied, 
the carriers offered evidence tending to show that the reduced rates pro- 
posed would be of benefit to the public; would not result in a loss to the 
carriers, thereby placing an additional burden on other traffic; and that 
the purpose of reducing said rates, with an expiration date, was not don© 
with the idea of destroying competing truck operators and then after the 



180 'N. C. Utilities Commission 

destruction of their competitors again raising the rates. The sole purpose 
of the reductions, as contended by the railroads, is to prevent further loss 
of traffic to the trucks and to retrieve, if possible, a portion of the business 
already lost. 

The carriers offered five witnesses: R. T. Etheridge, Assistant Freight 
Traffic Manager, Seaboard Air Line Railway; J. W. Perrin, Freight Traffic 
Manager, Atlantic Coast Line Railroad Company; J. F, Dalton, Traffic 
Manager, Norfolk Southern Railroad Company; E. R. Oliver, Vice Presi- 
dent, Southern Railway Company; and Chas. Ervin, Assistant Traffic 
Manager, The Texas Company. 

From the testimony of these witnesses the Commission finds the follow- 
ing uncontroverted facts: 

That the motor trucks are keen competitors with the rail carriers in 
the transportation of all commodities with the possible exceptions of cot- 
tonseed oil and phosphate rock; 

That this competition has progressively increased, particularly with 
respect to petroleum products, until, for the month of May, 1935, from 
the Port of Wilmington, the trucks transported 47.8 per cent of petroleum 
products and the railroads 52.2 per cent, to interior destinations in North 
Carolina; 

That the rates proposed in the instant case, while low, are yet compen- 
satory and, in fact, as shown by exhibit of witness Perrin, will produce 
for the average haul up to 270 miles a greater return to the carriers per 
ton mile than the carriers receive on an average from all other commodi- 
ties. The witness, Perrin, further testified that taking, for instance, an 
8,000 gallon tank car of gasoline or kerosene for 240 miles, the earning 
per gross ton mile amounts to 8.9 mills, while the railroads earning on 
fertilizers for the same distance is 7.4 mills, and on logs 3.3 mills. 

The carriers, through their witnesses, contended that the proposed rates 
were not offered as fair and reasonable rates, but as competitive rates and 
were necessary to meet competition and to prevent the carriers from 
ultimately losing all of the petroleum business. They further contended 
that it was even doubtful whether these rates were low enough to hold the 
business and witness Oliver, Vice President, Southern Railway, testified 
that in his opinion further reductions may be necessary. 

The Protestants offered no evidence as to the cost of transporting 
petroleum products, nor as to the rates charged by any truck operator 
for petroleum products, with the one exception of the testimony of Mr. 
Burt Bennett, who stated that he was connected with the Quality Oil Com- 
pany and with the Quality Transportation Company, and that he owned 
the controlling interest in both companies, and that the transportation 
company was engaged by contract to haul for the Quality Oil Company, 
for which service he charged the present freight rates. The witness Ben- 
nett was shown a cost estimate of transporting oil from Wilmington to 
Greensboro and from Wilmington to Winston-Salem which was prepared 
by Mr. Abbott, an auditor, showing the cost per hundredweight from Wil- 
mington to Greensboro of .2 51 cents and from Wilmington to Winston- 
Salem of .2 63 cents. Witness Bennett testified that he thought the various 



Decisions and Adjustments of Complaints 181 

items therein were correct. The said Abbott had admitted that he had 
never hauled petroleum for hire and knew nothing about the charges 
therefor. 

There were several contract haulers present at the hearing and the Com- 
missioner inquired if they were not prepared to give some light on the cost 
of transporting petroleum products and the rates charged by them therefor. 
Whereupon Judge Deal, their attorney, frankly stated to the Commissioner 
that he was not prepared to offer such testimony. 

Upon the evidence before the Commissioner there is no possible basis for 
finding that the rates proposed by the railroads are non-compensatory, or 
even that they are as low as are now charged by the contract motor opera- 
tors. And, furthermore, there is nothing upon which the Commissioner 
could base a finding that the proposed rates will destroy or put out of busi- 
ness the motor truck operators. If such be true, the motor truck operators 
failed to give to the Comjmissioner any information upon which he could 
base such a finding. 

From the foregoing facts and in further consideration of the fact that the 
Commission has just been advised that the Interstate Commerce Commission 
has this day refused to suspend the interstate rates, and that same will be- 
come effective interstate tomorrow, August 15, which would have the effect of 
diverting business from the Port of Wilmington to ports in Virginia and 
South Carolina, if our intra-state rates were not likewise reduced, forces the 
Commissioner to the conclusion that the best interests of the State as a 
whole demands an approval of the carriers' proposed rates. 

The Commission, however, is further of the opinion that while the pro- 
posed rates should be allowed, they should not be approved on the condition 
that they expire on June 30, 1937, as set out in the application. The Com- 
missioner well understands the contention of the railroads that by placing 
an expiration date on said rates, it ear-marks them as emergency competi- 
tive rates, and are therefore not an admission that they are fair and rea- 
sonable rates. The Commissioner also remembers the argument of the car- 
riers that in all probability these rates will be continued indefinitely beyond 
the expiration date set out in the petition, and that there is no real basis 
for the alleged apprehension on the part of the motor truck operators that 
the railroads intend to destroy them during the next two years and again 
raise the rates after competition has been wiped out. The Commissioner 
does not question the sincerity of the carriers' statements but in order to 
even avoid the appearance of evil and to preclude the railroads from doing 
what the motor operators contend is their purpose, the Commissioner ap- 
proves the rates strictly upon the condition that there shall be no expira- 
tion date and that the rates shall go into effect without limitation, and can- 
not be increased without approval. 

The carriers insist that, by reason of the proviso at the end of Section 16, 
Chapter 134 of the Public Laws of 1933, this Commission has no power to 
prevent any Public Service Corporation from reducing its rates and that 
this Commission, by reason of said proviso, is required to automatically ap- 
prove the reductions proposed, including the expiration date as set out in 
the petition. Undoubtedly, under said proviso, where a Public Service Cor- 
poration proposes a straight-out reduction in rates, without condition and 
without expiration date, this Commission could not prevent the rates being 



182 N. C. Utilities Commission 

reduced, but the same section of the law provides that no Public Service 
Corporation "shall be allowed to increase its rate and charge for service or 
change its classification in any manner whatsoever, except upon petition duly 
filed with the Utilities Commissioner and inquiry held thereon and the final 
determination and necessity of any such increase or change in classification 
service. 

The law, therefore, provides that a Public Service Corporation may de- 
cj'ease its rates without the approval of the Commission, but it also provides 
that it cannot again increase them without the approval of the Commission, 
and this positive inhibition in the statute against increasing the rates, with- 
out the approval of the Commission, cannot be circumvented by placing a 
condition upon the reductions which will give the utility the right to in- 
crease the rates at some future time without the approval of the Commission 
and without a finding by the Commission that the increases are fair and 
reasonable at the time proposed. 

The rates as proposed in the petition of the carriers are over definite and 
fixed routes. The question of routes was not gone into at the hearing and it 
must be distinctly understood that in approving the rates this Commission 
does not in any way commit itself to the finding that the routes set out in 
the petition are the only routes open to this traffic. The question of routes 
will be the subject of a later inquiry and this was made clear at the hearing. 

In view of the conclusions reached herein, it .is unnecessary to pass upon 
other legal questions raised by the carriers. 

Whekefore, it is ordeeed. That the rates set forth in Southern Freight As- 
sociation's petition, filed through Chairman J. E. Tilford, dated June 19, 
1935, be and the same are hereby approved with the exception that the ex- 
piration date of June 30, 1937, is not allowed and not approved, and that 
said rates be made effective without limitation, and that said rates shall not 
hereafter be increased without approval of this Commission. 

It is further ordered. That the routes set out in the petition are approved 
but not approved as the only routes open to the traffic under the law. 

It is further ordered, That these rates shall become effective on August 
15, 1935. 

This 14th day of August, 1935. 

By order of the Commissioner. Stanley Winborne, 

Attest: Commissioner. 

(Seal) R. 0. Self, Chief Clerk. 

Docket No. 446. 

IN THE MATTER OF ROUTING BETWEEN POINTS IN NORTH CARO- 
LINA 

Citation 

For a long period of years beginning after the elimination of the Justice 
Long and Short Haul Law in 1915, the common carriers by rail in the State 
have had on file with the Commission circulars which have the force of tar- 
iffs carrying routing it was proposed to follow on intra-state traffic, or, more 
properly stated, the circulars authorize routing via any and all routes ex- 
cept as pointed out therein. As a fair example of the method, Atlantic Coast 



Decisions and Adjustments of Complaints 183 

Line Railroad Company's Circular No. D-5238 is cited. Other carriers have 
similar circulars on file. 

Attention of the Commission has been directed to the fact that the At- 
lantic Coast Line Railroad and Seaboard Air Line Railway companies now 
have on file with the Commission, through Alternate Agent C. R. Young, 
his tariff 16-U, ICC 1722, carrying petroleum rates from Wilmington, N. C, to 
North Carolina points which names specific routing aside from the routing 
circulars above referred to and which obviously removes the routing circu- 
lar instructions. The A. C. L. Railroad has also filed with the Commission 
Supplement No. 6 (current supplement No. 8) to its Circular No. D-5238, 
which indicates clearly the intention to further complicate its routing in- 
structions by the inclusion therein of the language "and in the absence of 
specific routing for account of the Atlantic Coast Line Railroad." This has 
the effect of eliminating the circular routing and substituting tariff rout- 
ing and which, the Commission believes, is not permissible under the ar- 
rangement that all routing or exceptions thereto would be included in the 
routing circulars. 

It is, theeefore, ordered. That the Atlantic Coast Line Railroad Company, 
and Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers), and all other common carriers by rail affected, be 
and they are each hereby cited to appear before the Commission on Thurs- 
day, March 14, 1935, at ten o'clock, a. m., and show cause, if any there be, 
why all routing references on intra-state traffic should not be eliminated from 
Alternate Agent Young's Petroleum Tariff, (16-U), I. C. C. 1722, and from 
all other tariffs, and in future all routings be published in circular form as 
heretofore. 

By order of the Commissioner: Stanley Winborne, 

This 26th day of February, 1935. Commissioner. 

(Seal) R. 0. Self, Chief Clerk. 

Docket No. 325. 

IN THE MATTER OF ROUTING BETWEEN POINTS IN NORTH CARO- 

Order 
Hearing in the above entitled cause was held at Raleigh on June 14th, 1935. 
Appearances were as follows: 

Murray Allen and H. V. Borjes for Atlantic Coast Line Railroad Co. 

C. P. Reynolds and G. R. Ward for Seaboard Air Line Railway. 

H. L. Walker and Joseph Marks for Southern Railway Co. 

I. M. Bailey for Aberdeen and Rockfish Railroad. 

A. L. Thompson and D. J. Watson for Atlantic & Yadkin Railway Co. 
I J. H. Matthews for Carolina Southern Railway. 

L. R. Lawson for Piedmont & Northern and Durham & Southern Rail- 
ways. 

Jones Fuller for Durham & Southern Railway. 

G. Y. Jones and E. H. Evans for Laurinburg & Southern Railroad. 

G. F. Dempsey for Aberdeen and Rockfish Railroad. 

J, E. Jerrett for Atlantic & Carolina Railroad. 

George C. Potter for Carolina & Northwestern Railway, Danville & 
■. Western Railway, High Point, Randleman, Asheboro & Southern Rail- 
road and Yadkin Railroad. 

W. P. Conyers and W. H. Henley for Taylor-Colquitt Co. 



184 [N". C. Utilities Commission 

H. E. Boyd for Wilmington Oil and Fertilizer Co., Wilmington Port- 
Traffic Association, Wilmington Terminal Warehouse Co., Nitrate Sales 
Corporation, Cape Fear Terminal Co., and Acme Manufacturing Co. 

I. M. Porter for North Carolina Cotton Growers' Cooperative Asso- 
ciation. 

After hearing evidence and general discussion in the case by both shipper 
and carrier representatives the Commission announced its decision from 
the bench, in substance, as follows: 

The citation in the case was issued by this Commission on its own motion 
on the 26th day of February, 1935, directing the various railroads of the 
State to appear and show cause why all routes for freight movements within 
the State should not be open routes. 

Since the issuance of said citation the General Assembly of North Caro- 
lina of 1935 by Chapter 258 of the Public Laws of that session amended Sec- 
tion 1107 of the Consolidated Statutes, which amendment provides that there 
shall be no discrimination in the routes between railroads. The law now 
reads as follows: 

"All common carriers subject to the provisions of this chapter shall 
according to their powers afford all reasonable, proper and equal facili- 
ties for the interchange of traffic between their respective lines and for 
the forwarding and delivering of passengers and freights to and from 
their several lines and those connecting therewith, and shall not dis- 
criminate in their rates, routes and charges against such connecting 
lines, and shall be required to make as close connection as practicable 
for the convenience of the traveling public. And common carriers shall 
obey all rules and regulations made by the Commission relating to 
trackage." 

In the opinion of this Commission, the said amendment of the 1935 Gen- 
eral Assembly does by legislative enactment that which the original citation 
in this case sought to inquire into and has already determined the issue in- 
volved in the citation. Wherefore, 

•It is ordered, That the case be and the same is hereby dismissed ; and 

It is further ordered, That there be no restriction placed on any route or 
routes by any railroad within the State of North Carolina which discrim- 
inates against any other route; and- 

It is further ordered. That any and all routing instructions must here- 
after be submitted to this Commission for affirmative approval before being 
published and made effective. 

This 14th of June, 1935. 

By order of the Commissioner: Stanley Winborne, 

Concurred in by Commissioner. 

Associate Commissioners : 
F. L. Seeley, 
F. W. Hanft. 

Attest: 

(Seal) R. O. Self, Chief Clerk. 
Docket No. 325. 



Decisions and Adjustments of Complaints 185 

IN THE MATTER OP PETITION OP THE ATLANTIC COAST LINE 
RAILROAD COMPANY TO REVISE ITS PASSENGER PARES WITHIN 
NORTH CAROLINA TO THE BASIS ORDERED BY THE INTERSTATE 
COMMERCE COMMISSION UNDER GENERAL PASSENGER PARES 
DOCKET, I.C.C. NO. 26550 

Order 

Appearances: R. B. Gwathmey, Attorney, Washington, D. C, and W. 
H. Howard, General Passenger Agent, Wilmington, N, C, for petitioner. 

Hearing before the Utilities Commissioner upon petition of the Atlantic 
Coast Line Railroad Company dated June 11, 19 3 6, in the above matter, 
was held in Raleigh, pursuant to notice, at 10:00 o'clock, a. m., Monday, 
July 13, 1936. No one appeared in opposition, although general notice 
was given to the public through the press on June 27, 193 6. 

As a result of extended hearings before the Interstate Commerce Com- 
mission in "Passenger Pares and Surcharges, Docket 26550" wherein 
passenger fares and surcharges in the entire United States were investi- 
gated, that Commission, on Pebruary 28, 1936, issued its order prescrib- 
ing as reasonable maxima the basis of 2 cents per mile for travel in 
coaches and 3 cents per mile for travel in sleeping and parlor cars, elim- 
inating the surcharge amounting to one-half of the Pullman Company's 
charge for space occupied. Petitioner and other southern carriers inaugu- 
rated experimentally in December, 193 3, and extended from time to time 
since that date, the last extension covering the period April 1 to December 
31, 1936, inclusive, rate of 1 ^/^ cents per mile for tickets good in coaches, 
and 3 cents per mile without surcharge for tickets good in sleeping and 
parlor cars, for the purpose of meeting a competitive situation. 

It is contended by petitioner that it adopted those experimental bases 
regretfully and reluctantly, because of the conviction that they represented 
entirely too drastic reductions and the resulting fares were unnecessarily 
low; however, due to the competitive situation then prevailing and the 
lack of time for comprehensively considered independed action, it was 
then considered necessary to meet, without exception, the coach fares of 
other lines which had made the drastic reductions effective. 

The Atlantic Coast Line is now about to complete a comprehensive plan 
of air-conditioning equipment on all of its trains excepting those on a few 
branch lines w^here passenger traffic density is exceedingly light. It is 
expected that air-conditioned coaches for both white and colored passen- 
gers will be in operation within the next week. Most of its lines in North 
Carolina have recently been so equipped. The furnishing of air-condi- 
tioned coach equipment is an expensive proposition, as each such car 
represents an expense of approximately $9,000.00, but, petitioner testifies, 
this means a better, more comfortable and more valuable service to the 
traveling public and it feels that for such service a coach rate of 2 cents 
per mile is not higher than reasonable. 

According to figures offered in evidence by petitioner, it is the opinion 
of this Commission that the present experimental fare of ll^ cents per 
mile for tickets good in coaches does not give it a fair return on its invest- 
ment and that inasmuch as the Interstate Commerce Commission has 



186 'N. C. Utilities Commission 

found 2 cents per mile for tickets good in coaches to be a reasonable 
niaximum fare throughout the entire nation, it is also our opinion that 
a fare of 2 cents per mile is a reasonable maximum basis for application 
within North Carolina. 

It is, therefore, ordered, That the Atlantic Coast Line Railroad Company's 
petition be, and the same is, hereby granted, subject to the same being 
published on not less than fifteen days' notice to the public. 

It is further ordered. That the Atlantic Coast Line Railroad Company 
may apply a minimum charge of 10 cents for all classes of equipment, 
and that sufficient cents may be added to the fares resulting hereunder, 
as well as to the fares for tickets good in sleeping and parlor cars, so that 
all fares will end in or 5. 
This 22nd day of July, 1936. 
By order of the Commissioner. Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 761. 
I 
IN THE MATTER OF SWITCHING TO WAREHOUSE OF MORROW-FREE- 
MAN COMPANY, NORWOOD, N. C, NORFOLK SOUTHERN RAILROAD 
COMPANY vs. SOUTHERN RAILWAY COMPANY. 

Order 

It appearing that our order of March 25, 1916, in the above matter, where- 
in it was ordered that defendant switch car M, P. No. 33788, loaded with 
fertilizer, shipped from Charlotte, N. C, over the Norfolk Southern Railroad, 
consigned to Morrow-Freeman Company, Norwood, N. C, whose warehouse 
was located, at that time, adjacent to Southern Railway Company's team 
track; and 

It further appearing that the Southern Railway having included the name 
of this company in its switching tariff providing reciprocal switching to and 
from said company's warehouse; and 

It further appearing, upon representation of the Southern RaiMay Com- 
pany that there are no comparable instances at other points with North Car- 
olina on its lines, it is our opinion that said order of March 25, 1916, having 
served its purpose for the reason that the Southern Railway Company has 
set out in particular in its switching tariff the names of concerns located 
within switching limits at other points in North Carolina served by it, should 
be vacated and set aside. 

It is, therefore, ordered, That our order of March 25, 1916, be and the same 
is hereby vacated and set aside. 
By order of the Commissioner: 
This 21st day of February, 1935. Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner. 

Docket No. 319. 



Decisions and Adjustments of Complaints 187 

GUY M. BEATY ROOFING CO. vs. PIEDMONT & NORTHERN RAILWAY 
CO— SWITCHING AT CHARLOTTE, N. C. 

The above entitled matter -came on for hearing before the Commission and 
was heard before Commissioner Winborne at Raleigh, Tuesday, November 
26th, 1935. 

Appearances were as follows: 

Mr. W. C. Davis, Attorney for Guy M. Beaty Roofing Co. 

Mr. J. C. McGowan, Attorney for Piedmont & Northern Railway Co. 

Mr. W. T. Gill, Vice-President and General Manager, Piedmont & North- 
ern Railway Company. 

Mr. E. B. Hardin, Auditor, Piedmont & Northern Railway Co. 

Mr. L. R. Lawson, General Freight Agent, Piedmont & Northern Rail- 
way Co. 

The complaint arose as result of notice by letter dated May 15th, 1934, 
addressed to Guy M. Beaty Roofing Co. and signed by L. F. Crenshaw, Gen- 
eral Agent of P. & N. Railway Co., Charlotte, reading: 

"This is to advise that on and after June 11th, 1934, we will not accept 
cars consigned to you in switch service from connecting lines as the 
track from which you load or unload is not a private track but a yard 
track. 

"We believe you understand that originally we were in error in in- 
cluding your location in our Switching Tariffs. We, of course, will in 
the future place cars to this track for loading and unloading by you 
provided the Piedmont & Northern Railway handles for a revenue haul." 

Complaint contends the track was built 20 years ago and was paid for by 
its predecessor in ownership, the Defiance Sock Mills and from that time to 
the date of above notice the Piedmont & Northern has been switching with- 
out charge; that during these years ownership of the property changed hands 
and now belongs to complainant, the Guy M. Beaty Roofing Company, and 
that the track is entitled to be treated as a private siding by the Piedmont & 
Northern Railway. 

We quote from the testimony: 

"We had been using the plant as a roofing and sheet metal plant and 
had been there three years before we heard the track was not a private 
one. We used the track exclusively. Ninety-nine per cent of the track 
is on our property, all except 29 feet is on our property," testified Mr. 
Beaty. "We are wholesale distributors of roofing and sheet metal and 
we talked with Mr. Crenshaw and told him we trade with other rail- 
roads and think we ought to divide our business with them; some to the 
Norfolk Southern; some to the Seaboard; but more to the Southern 
Railway than any line except the P. & N. Our freight bill amounts to 
about $5,000 per year." 

Mr. Morehead Jones, testifying for Beaty Company, stated he formerly 
owned the plant and that he bought the property about the time the siding 
was installed. That was part of the agreement Mr. Springs, agent of Fabrick 
Development Company arranged for it. There was some controversy about 
payment for the track. Mr. Jones said: "I think I paid $500 for it, but I 



188 ]Sr. C. Utilities Commission 

have no record of it. They wanted me to pay $500. We operated the plant 
eight or nine years. The track never was used for other purpose than to 
serve this building." 

Mr. Richberg, testifying for Beaty Company, stated he came back from 
South Carolina and found the track built and that it used to be customary to 
put sidings in free if applicant did certain amount of business. 

Mr. McGowan's statement showed that the P. & N.'s position is that the 
track is its sole property; was built and paid for at its sole expense and has 
been maintained by it; that no agreement was ever made for its construc- 
tion, maintenance or operation and that the track being a yard or team track 
is not entitled to reciprocal switching. "We find no correspondence regard- 
ing the track, except a grading contract let in 1915." Mr. Gill of the P. & 
N. testified: "Back in those days we were a young railroad and we were seek- 
ing business and if a man had enough business to justify a side track, we 
put it in. No tracks were paid for prior to Federal control." 

Mr. Holtzhour testified that: "He is Road Master for the P. & N. and lives 
in Charlotte; that he was familiar with the building of the siding for De- 
fiance Sock Mill; that the track was built under his supervision; that he was 
extra gang foreman at the time and actually supervised and put in the track 
with his force; that the track has since been maintained by the P. & N.; 
that the track had been used at times for storing substations when the sid- 
ing was not in use; but had never used it while Mr. Jones used it nor since 
Mr. Beaty has used it. The estimated reproduction cost of the siding is 
$903.80 as of December 31, 1933." 

Mr. Hardin, Auditor of the P. & N. at Charlotte, testified: "That he has 
been with the P. & N. since 1912 and auditor since 1922; that the track in 
controversy was built in 1915 at the sole expense of the P. & N. and since 
maintained by them." 

General Freight Agent Lawson, of the P. & N. testified switching was dis- 
continued in this track for connections for the reason that since the Beaty 
siding was originally constructed to provide facilities for handling coal for 
the sock mill and the switching should have been discontinued when the 
warehouse was abondoned years ago. 

From a consideration of all the evidence, the Commission is of the opinion 
and so finds, that this is a typical case of probably a great many similar sit- 
uations which might be found in the State since it is true that in earlier 
days railroads which were new and seeking to develop business enterprises 
on their terminals were more liberal and certainly not so strict about con- 
tracts and agreements, collection of cost, etc., for facilities as is the practice 
today. Mr. Gill summed up the matter when he testified: "Back in those 
days we were a young railroad and we were seeking business and if a man 
had enough business to justify a side track we put it in. No tracks were 
paid for prior to Federal control." 

The difficulty which confronts the Commission in arriving at a satisfac- 
tory conclusion in this case is that neither the petitioner nor the respondent 
have any records as to who paid for the construction of the switching track. 

Mr. Morehead Jones, predecessor in title of the Beaty Company, has a 
recollection that he paid to the railroad company $500 for the construction 
of said track, but it is merely a recollection. 



Decisions and Adjustments of Complaints 189 

Mr. Holtzhour, roadmaster for the P. & N. at the time the track was con- 
structed and who supervised its construction, only knows that the estimated 
reproduction cost of same was $903.80 as of December 31, 1933. 

Mr. Hardin, Auditor of the P. & N. says that the entire cost of the con- 
struction was originally paid by the railroad and that same has been main- 
tained by the railroad since 1915, but he does not know and the records do 
not show whether Mr. Jones reimbursed the railroad for any part of the cost. 
But the fact that regardless of who paid for the track, it is uncontroverted 
that from 1915 until June, 1934, no attempt was ever made by the railroad 
company to collect a switching charge. 

The further difficulty comes when it is necessary to define vested inter- 
ests, rights, etc., in connection with cases of this nature. However, one sit- 
uation has not changed; that is, that the Piedmont & Northern is still seek- 
ing business and the Beaty Company, still desirous of continuing to use the 
siding in which it believes it bought a vested interest when it purchased its 
warehouse property and here it should be noted there is no evidence to in- 
dicate that the Beaty Company undertook to determine ownership of the track 
when they bought the property, but like the railroad company they seem to 
have assumed their rights and that such a condition as the present would 
not arise. 

Under the circumstances and conditions, therefore, as outlined by the tes- 
timony, the Commissioner is of the further opinion that it should be the aim 
and intention of all parties to continue the business intercourse under a dis- 
tinct understanding of the rights of all parties in the ownership, maintenance 
and operation of the siding. 

It is, therefore, ordered, That the Piedmont & Northern Railway restore 
all former switching service to and from the Beaty siding as in effect prior 
to June 11th, 1934, effective November 15, 1936, and this, of course, means the 
restoration of Beaty Company's name in its Switching and Absorption Tar- 
iff, and that in consideration of this restitution the Beaty Company shall 
upon request of the Piedmont & Northern Railway in future furnish the ma- 
terial for maintaining the track in safe condition for its operation, and that 
the Piedmont & Northern Railway shall perform the necessary work to main- 
tain the track. 

This October 22d, 1936. 

Attest: Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner. 

Docket No. 144. 

RE: DEMURRAGE CHARGE SEABOARD AIR LINE RAILWAY COM- 
PANY (L. R. POWELL, JR., AND HENRY W. ANDERSON, RECEIVERS) 
AGAINST KIKER AND YOUNT, REIDSVILLE, NORTH CAROLINA 

This matter comes informally before the Commission upon the question 
submitted to it by the Seaboard Air Line Railway Company and Messrs. 
Kiker and Yount; involving demurrage charges on shipment of fine crushed 
rock from Greystone, N. C, to Oxford, N. C. 

The facts are these: Messrs. Kiker and Yount made shipment of thirty- 
one cars of fine crushed stone during the month of January, 1936, at which 



190 ^. C. Utilities Commission 

time the weather was extremely cold and the stone froze in transit. Upon 
arrival at destination the shipper made every effort to thaw and break up 
the stone so that it could be unloaded, even going so far as attempting to 
dynamite same, but every effort made was unsuccessful until the lapse of a 
considerable period of time when the weather moderated sufficiently to thaw 
the stone. The Seaboard Air Line Railway Company admits that the shipper 
made every possible effort to unload the cars. 

From the time of arrival until the cars were actually unloaded, there had 
accumulated, according to the tariff, a total demurrage on said cars of $1,- 
319.00, which amount, under the conditions, the shipper thinks he should not 
be required to pay. Of this amount, $535.00 is due by the Seaboard Air Line 
Railway Company to connecting carriers for the reason that the cars in- 
volved in the shipment belonged to other railroads. 

Upon a consideration of all the facts and circumstances, I am of the opin- 
ion that the rigid conditions and restrictions set forth in the tariff were 
not intended to apply, and should not apply, where conditions over which 
neither the railroad nor the shipper has any control prevent a compliance, 
and that it never could have been in contemplation at the time the tariff was 
made that such an unusual condition would exist as in the present case, and 
that it would be an undue and unjustifiable hardship upon the shipper to re- 
quire him to pay the total demurrage charges. However, since the Seaboard 
Air Line Railway Company, which likewise is without fault, will be re- 
quired to pay to its connecting carriers for the use of their cars the sum of 
$535.00, the shipper should hold the Seaboard Air Line Company harmless 
against any loss, which I am informed he is willing to do; 

Wherefore, This Commission approves a full settlement of this claim by 
the payment to the said Seaboard Air Line Railway Company of the sum 
of $535.00 

This March 24, 1936. Stanley Winborne, 

Docket No. 695. Utilities Commissioner. 

IN THE MATTER OF APPLICATION OF SOUTHERN RAILWAY COM- 
PANY TO REVISE COMPETITIVE SWITCHING CHARGES AT HIGH 
POINT, N. C. 

Order 

This application is dated January 6, 1934, and petitions this Commission 
for its own account and that of its controlled subsidiary, the High Point, 
Randleman, Asheboro & Southern Railroad, for authority to revise the switch- 
ing charges on intra-state traffic at High Point when all or any part thereof 
is absorbed by the High Point, Thomasville & Denton Railroad Company. 
Upon request of the High Point, Thomasville & Denton Railroad Company, 
hearing was held at the Commission's hearing room at Raleigh on Novem- 
ber 21, with the following appearances: 

Charles Clark, Attorney, Southern Railway, Washington, D. C, for 
applicants. 

James B. Lovelace, Attorney, High Point, Thomasville & Denton Rail- 
road, High Point, N. C, for protestants. 



Decisions and Adjustments of Complaints 191 

The petition sets out the present switching charge for switching at High 
Point is $2.25 per car and the Southern Railway seeks to make this charge 
$6.30 per car on traffic which moves intra-state in North Carolina when all 
or any part of the charge is absorbed by the High Point, Thomasville & Den- 
ton line and to continue the $2.25 charge per car when said charge is paid 
by the consignor or consignee. 

The present charge, it is alleged, was established only as a reciprocal 
charge and is not by any means considered as reasonable for the switching 
service, that when originally established it was thought the amount of switch- 
ing performed for its account by the High Point, Thomasville & Denton line 
would more nearly equal the amount of switching it would be called upon 
to perform for that line, and by testimony through Witness Wolford (Ex- 
hibit No. 2) shows that there are 77 industries located at High Point on the 
rails of the Southern and its subsidiary line, while on their competitor, the 
High Point, Thomasville & Denton Railroad, there are 52 industries only, 
that there is lack of reciprocity between the lines, that in 1933 the high 
Point, Thomasville & Denton line delivered the Southern for placement at 
industries located on the Southern Railway 2246 cars comparing with 577 
cars delivered by the Southern for placement at industries on the High Point, 
Thomasville & Denton line. The charge of the High Point, Thomasville & 
Denton line on cars switched for account of the Southern is $2.25. Prior to 
February 20th, 1934, an additional switching charge of $10.00 per car, mak- 
ing a total of $12.25 per car, applied to industries in High Point on the elec- 
tric line of the High Point, Thomasville & Denton line, but on that date the 
$10.00 additional charge was cancelled leaving the charge $2.25. 

It appears that the motive of the Southern Railway in its proposal to in- 
crease the interchange switching rates in question is the fact that numer- 
ous industries located on the Southern Railway favor the High Point, 
Thomasville & Denton with the line haul on both inbound and outbound traf- 
fic so that the Southern receives only a switching charge. This charge, it 
is contended, does not cover the cost of service. Shippers, of course, have a 
right to route their shipments and it is immaterial so far as this proceed- 
ing is concerned whether shippers at High , Point located on the Southern 
favor the High Point, Thomasville & Denton road or not. It is a fact that 
the High Point, Thomasville & Denton line is owned and controlled largely 
by the business men at High Point. 

The contention of the High Point, Thomasville & Denton road is that it 
has not shown a lack of reciprocity; that if it does not exist in fact, it cer- 
tainly exists potentially. The revenue derived by its line from intra-state 
traffic (carload) does not warrant any increase in switching cost, to grant 
it would upset the present rate structure, abrogate existing rules of the Com- 
mission and bring about attempts to raise switching rate at other places in 
the State. 

After hearing and giving attentive and careful thought to the evidence, 
the Commission is of the opinion and so finds that while it is the general 
policy of this Commission to give every scintilla of evidence its due weight 
and particularly when favoring the short or weak railroad lines, it appears 
this is a case clearly differentiated from any others wherein the greater 
switching duties are upon the Southern Railway. 



192 ^N". C. Utilities Commission 

It is, therefore, ordered. That the Southern Railway and its affiliated line, 
the High Point, Randleman, Asheboro & Southern Railway, be and they are 
hereby authorized to increase their interchange competitive switching rate 
between their lines and that of High Point, Thomasville & Denton Railroad 
from $2.25 per car as now in effect to $6.30 per car, the said charge to apply 
only upon traffic interchange with the High Point, Thomasville & Denton 
Railroad and only where the said charge is absorbed and paid by the line 
performing line haul service. 

By order of the Commissioner: 

This 27th day of February, 1935. Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner'. 

Docket No. 196. 

IN THE MATTER OF MEADOWS MILL COMPANY vs. SOUTHERN RAIL- 
WAY COMPANY 

Order 

« 

This complaint came on to be heard and was heard before Commissioner 
Winborne at the Commission's hearing room, Raleigh, N. C, July 16, 1935. 

Complaint was represented by Attorney Norman Block. 

Southern Railway Company and Yadkin Railroad Company were 
represented by W. W. Wolford, Commerce Agent, and G. C. Potter, Gen- 
eral Freight Agent, respectively. 

The complaint, filed with the Commission on May 2, 1935, alleges that 
complainant paid certain specified charges on stone shipments from Granite 
Quarry, N. C, the bills of lading having been issued by the Yadkin Railroad 
Company, consigned to complainant, Meadows Mill Company at North Wilkes- 
boro upon which the Southern Railway collected charges on basis of $2.70 
per net ton; that the proper applicable rate was $1.57 per net ton as de- 
scribed by the North Carolina Utilities Commission in its Circular No. 342 
of October 1, 1929; that the total amount collected on shipments involved 
amounted to $435.66; whereas the amount which should have been collected 
was $254.96 or an overcharge ot $180.70, which amount is alleged subject to 
be doubled under Section 1086 of Consolidated Statutes or an amount in this 
case of $361.40. 

Mr. R. G. Finley, President of the Meadows Mill Company, testified in be- 
half of his company that he purchased this stone from Gardner Brothers, 
whose headquarters are at Salisbury, inserting in his orders specifications 
therefor. These stones are described as circular stone, with diameters 16, 
20, 24 and 30 inches, according to the size stone required, with one side 
smooth and a hole through the center; that he usually ordered a certain 
number of each size. One stone is used as a (mill) runner. The bed (mill) 
stone is cemented into a frame and held stationary. The two stones, when 
in operation, must line up with each other, that is, when they turn, the 
grooves must fit into one another. It takes approximately ten days for com- 
plainant to further prepare the stone into regular or finished millstones. It 
appears that some of them prove to be worthless as millstones, especially 
those with seams, which are thrown aside and used for other purposes. Most 
stones, however, are good millstones. 



Decisions and Adjustments of Complaints 193 

Mr. W. W. Wolford, testified for defendants, stated that he made a spe- 
cial trip to Granite Quarry and obtained copies of bills of lading covering 
the five cars named in this complaint; that each shipment was described as 
millstones, and that a commodity rate of $3.00 per ton was established in 1914 
for the specific purpose, at the request of shippers at Granite Quarry, of 
applying on stones of kind and description contained in the carload ship- 
ments named in complaint and ever since the rate was established, these 
stones have been so moving. Subsequent to the establishment of the above 
rate it was reduced to the present rate of $2.70 per net ton. 

The description in the Commission's Circular No. 342, which covers rate 
of $1.57 per ton alleged by complainant to be applicable on these millstones 
reads as follows: 

Maximum freight rates on Stone, Marble, Granite, viz.: Curbing or 
paving blocks; building; dimension or random; rough quarried or 
dressed; polished or carved. Carload minimum weight 50,000 pounds. 
Rates in cents per 2,000 pounds. 

The description covering the rate of $2.70 assessed on these shipments and 
contended by defendant to be the legal rate applicable on millstones as 
shipped from Granite Quarry to North Wilkesboro, N. C, reads as follows: 

Stone, viz.: Millstones, shipped in the rough, C. L., minimum weight, 
30 net tons, per ton, 2,000 pounds. 

It has been an established rule or policy of long duration that the estab- 
lishment of an exception or a commodity rate on any article removes that 
particular article from the classification. Therefore, in the absence of a 
rating in the exception sheet, or a published commodity rate, the ratings in 
the classification proper apply. Also, a mileage commodity rate takes pre- 
cedence over a rating in the Exception Sheet, and a specific or point to point 
commodity rate takes precedence over all other rates. 

Millstones are not described or listed in the classification under the head- 
ing of marble, granite or stone, but are elsewhere specifically listed by name 
in the classification. The ratings, therefore, in the classification as applying 
on marble, granite or stone, do not cover millstones, nor does the millstone 
rating apply on any other article of stone listed in the classification. For 
these reasons the Commissioner is of the opinion that the rates on stone 
described in Circular No. 342, supra, only remove from the classification sim- 
ilar articles of marble, granite, or stone and does not include millstones. 
It is the further opinion of the Commissioner that the quarry, complying 
with the specifications of complainant, manufactures from stone that would 
ordinarily be covered by Circular No. 342, "Millstones in the Rough," for 
which a special rate of $2.70 has been established from Granite Quarry to 
North Wilkesboro. The fact that these stones are finished at destination 
does not change the status at shipping point. 

The Commissioner is of the opinion and so finds that beyond question the 
commodity here involved consisted of millstones in the rough (unfinished) 
— shaped from dimension stone, containing a hole through its center, sold 
for millstones and eventually further dressed and used as such in mills. That 
the rate of $2.70 was established for the purpose of moving these stones and 
under which they have moved for a number of years. 



194 ]N". C. Utilities Commission 

The Commissioner is of the further opinion and, therefore, holds that the 
product shipped was properly described in the bills of lading as millstones 
and that the correct rate of $2.70 per ton was not and is not unreasonable, 
and having been properly charged on the shipments, the complaint is hereby 
ordered dismissed. 

This 14th day of February, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 241. 

Application for Abandonment and Discontinuance Freight Sta- 
tions, Depot Facilities and Passenger Train Service ; 
Also Establishment of Facilities 

IN THE MATTER OF APPLICATION OF THE ATLANTIC AND NORTH 
CAROLINA RAILROAD COMPANY FOR AUTHORITY TO DISCONTINUE 
PASSENGER TRAINS NOS. 1 AND 6, BETWEEN MORBHEAD CITY, 
N. C, AND NEW BERN, N. C. 

Order 

The instant application results from failure of these trains to pay a rea- 
sonable return. 

When these trains were voluntarily inaugurated by the Norfolk Southern 
Railroad Company it was with the understanding with this Commission 
that if these trains did not pay consent would be given for their withdrawal. 

The trains involved are, No. 1, leaving Morehead City daily at 7:30 a. m., 
arriving at New Bern at 8:40 a. m.; No. 6, leaving New Bern daily at 4:40 
p. m., arriving at Morehead City at 6:00 p. m. 

General Auditor W. M. Dutton of the Atlantic & North Carolina Railroad 
Company states that from November, 1935, to June, 1936, inclusive, the aver- 
age gross revenue of the two trains was only $3.73 per day. Our Rules 
of Practice have been complied with by public notice posted by General Man- 
ager on July 25, 1936, and, upon the above showing, and no protest having 
been filed, the Commission is of the opinion that it would be useless to set the 
matter for a formal hearing; and 

It is, therefore, ordered, That the Atlantic & North Carolina Railroad 
Company be and it is hereby authorized to discontinue passenger trains 
Nos. 1 and 6 between Morehead City and New Bern, effective August 8, 1936. 

This 7th day of August, 1936. 

By order of the Commissioner. Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner. 

Docket No. 795. 



Decisions and Adjustments of Complaints 195 

IN THE MATTER OF APPLICATION OF ATLANTIC COAST LINE RAIL- 
ROAD COMPANY TO DISCONTINUE AGENCY AT McFARLAN, N. C, 
LOCATED BETWEEN CHERAW, S. C, AND WADESBORO, N. C, ON 
ITS WADESBORO LINE, AND MAKE SAME A PREPAY STATION. 

Order 

Pursuant to notice hearing on above application was held at Raleigh on 
Tuesday, July 16, 1935. 

Appearances for applicant railroad: 

O. H. Page, General Superintendent, Savannah, Ga. 
R. B. Hare, Superintendent, Florence, S. C. 
Appearances for protestants: • 

H. B. Taylor of the firm of Taylor & Thomas, Attorneys-at-law, Wades- 
boro, N. C. 

Applicant presented a comparative statement of earnings of the station 
for two years beginning July, 1933, and ending June, 1935, which shows net 
for fiscal year 1934-1935 — Atlantic Coast Line Railroad proportion, $2,670.81. 
The agent's salary is $60.00 per month, plus $10 per month as express agent. 
The salary was reduced several years ago when the telegraph office was re- 
moved to which the Agents' Committee agreed. 

However, business continues to decrease, applicant urges, and the busi- 
ness done being largely carload can be handled as easily and conveniently 
without an agent as by an agent. Applicant further argues that due to 
stringent times every dime that could be saved should be saved by the com- 
pany even at all stations between "Montgomery and Richmond." 

Protestants argue that McFarlan Community has been friendly to the At- 
lantic Coast line and it now desires to be helpful but wants to keep its 
agency, which is usually looked upon as an asset when transportation con- 
veniences are considered. 

The Commission is of the opinion and so finds that while the question 
is a close one on account of meager revenue it is nevertheless thought that 
evidence of potiential traffic justifies the conclusion that with the spirit of 
cooperation indicated by protestant counsel additional trial period should be 
allowed by the Atlantic Coast Line Railroad Company to demonstrate that 
McFarlan community needs and desires to keep its railroad agency and by 
reason of its cooperation and patronage deserves to keep the agency 
v/hich has been reduced to a minimum and is not expensive as railroad 
agencies usually run. 

It is, therefore, ordered. That the application of Atlantic Coast Line Rail- 
road Company to close its agency at McFarlan and make same a prepay 
point, be and the same is hereby deferred for a six month's period, at 
the expiration of which time applicant may renew the application in case 
economic conditions are not improved so as to otherwise justify, without 
question, continuance of the agency. 
This 2 6th day of July, 1935. 

By order of the Commissioner. Stanley Winborne, 

Attest: Commissioner. 

R. O. Self, Chief Clerk. 
Docket No. 366. 



196 'N. C. Utilities Commission 

IN THE MATTER OF APPLICATION OF ATLANTIC COAST LINE 
RAILROAD COMPANY FOR AUTHORITY TO DISCONTINUE THE 
AGENCY AT OVERHILLS, N. C, AND MAKE IT A PREPAY STATION 

Order 

Notice having been posted by the Railroad at Overhills station of the 
intention of the Atlantic Coast Line Railroad to apply to our Commission 
for permission to close the Overhill Agency and make the station a 
prepay point, the Commission gave the information to the State press 
and set the matter down for a hearing on July 16th, 1935. There being 
no appearances at the hearing except those of the applicant through 
General Superintendent O. H. Page and Superintendent L. Crocker, and 
it appearing that the revenue at this station has greatly diminished, 
particularly since the death of Mr. Rockefeller, at whose behest the 
station was established, it appears reasonable that the agency be closed 
and the station continued only as a prepay point; 

It is, therefore, ordered. That the Atlantic Coast Line Railroad Company 
be and it is hereby authorized to discontinue its agency at Overhills, N. C, 
and make same a prepay station. 

This 19th day of July, 1935. 

By order of the Commissioner: Stanley Winborne, 

Attest: Commissioner. 

R. 0. Self, Chief Clerk. 

Docket No. 410. 

IN THE MATTER OF APPLICATION OF ATLANTIC COAST LINE 
RAILROAD COMPANY TO DISCONTINUE AGENCY AT POLLOCKS- 
VILLE, NORTH CAROLINA 

Order 

Hearing in this matter was held at the Commission hearing room, 
Raleigh, Wednesday, October 24, 1934. The Atlantic Coast Line was 
represented by General Superintendent Page, Superintendent Cobb, 
Trainmaster Crocker and Agency Supervisor Alderson. Citizens of Pol- 
locksville and community were represented by Hon. R. P. Bender, Messrs. 
J. K. Warren, B. L. Brock and G. R. Hughes. 

The Coast Line application recites that Pollocksville is located on its 
New Bern branch thirteen miles from New Bern and seven miles from 
Maysville. The application further shows that Coast Line revenue for 
twelve months ending June, 1934, was $1,493.25, or an average of $124.44 
per month — that there is nothing in sight to indicate an improvement in 
revenue from the station. 

There was, it is stated, a Governmental movement of cattle in August, 
the revenue on which amounted to considerable, some of which was 
unloaded at Pollocksville, but the figures are not included in the above 
statement. Testimony shows that in April, 1932, at a meeting at Flor- 
ence the Operators' Order was appealed to for a reduction in the Pollocks- 
ville Agent's pay and the agent agreed to take $65.00 per month. His 



Decisions and Adjustments of Complaints 197 

former pay was $120.00 per month. Revenue conditions, however, have 
gotten constantly worse. 

The opposition plead for a while longer in which to demonstrate that 
Pollocksville agency would improve; that the County of Jones is agri- 
cultural. Carload after carload of hogs were formerly shipped each year 
from Pollocksville. Cooperation is promised to the end that former 
prosperity may be brought back. Now people are becoming cattle minded. 

The Commission recognizes that were it to follow strictly the lines of 
evidence it would be compelled to order the agency discontinued, however, 
we are not inclined to do this for several reasons. Pollocksville has been 
an agency station ever since the railroad was built. At that time Trent 
River which passes the village had a steamer plying between New Bern 
and Trenton, the County seat. The boat does not now operate and we 
are going to suggest that the agency matter be held in abeyance until, 
say June 1st, 1935, after which we will expect to hear from the Atlantic 
Coast Line further. 

This 5th day of January, 19 3 5. 

By order of the Commission. Stanley Win.porne, 

Raleigh, N. C. Commissioner. 

R. 0. Self, Chief Clerk. 

Docket No. 18 6. 

IN RE: APPLICATION OF ATLANTIC COAST LINE RAILROAD COM- 
PANY TO DISCONTINUE AGENCY AT TURKEY, N. C, ON THE 
CLINTON BRANCH 

Order 

This case came on to be heard before Commissioner Winborne at 10 
o'clock the morning of December 2 in accordance with notice previously 
served upon all parties including the Mayor of Turkey, N. C. 

The Atlantic Coast Line Railroad was represented by General Superin- 
tendent O. H. Page of Savannah, Ga., L. Crocker, Superintendent, Wil- 
mington, N. C, and W. L. Alderson, Agency Supervisor, Rocky Mount, 
N. C. 

Witness Crocker testified, presenting statement showing that for twelve 
months, ending August 31, 1936, the Coast Line revenue at Turkey 
amounted to $1,688.91 compared with similar period for 1935, amounting 
to $3,8 9 2.40, or a decrease in 19 3 6 over 1935 of 56.6 per cent. Witness 
stated that the great decrease seemed to result from shippers using trucks 
for hauling the business formerly moving by railroad. 

The agent's pay at Turkey is $60 per month and Superintendent 
Crocker stated that 5 per cent of the revenue as above referred to was 
usually credited to connecting lines and only 50 per cent accrued to the 
Coast Line. Using this as a basis would leave very little profit to the 
Coast Line. This station, Mr. Crocker said, is located on a paved highway 
four miles from Warsaw and seven miles from Clinton. 

No one appeared at the hearing to oppose the application. Inquiry by 
phone to Mayor Carroll at Turkey brought the statement that the weather 



198 JN". C. Utilities Commission 

v/as too bad for him to attend the hearing. No request for postponement 
was made. The Commission is of the opinion and so finds that the 
application has been justified and 

It is, therefore, ordered. That the Atlantic Coast Line Railroad Company 
be and it is hereby authorized to make Turkey a prepay station effective 
December 15, 1936. 

This 2nd day of December, 19 36. 

By order of the Commissioner: Stanley Winborne, 

R, 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 848. 

IN THE MATTER OP APPLICATION OP LOUISVILLE & NASHVILLE 
RAILROAD COMPANY FOR AUTHORITY TO REARRANGE, CON- 
SOLIDATE AND REVISE PRESENT TRAIN SERVICE AND SCHED- 
ULES POR ITS MURPHY BRANCH MIXED PREIGHT AND PAS- 
SENGER TRAINS, AND TO COMBINE SUCH MURPHY BRANCH 
OPERATION WITH THE REVISED OPERATION OP LOCAL 
PREIGHT TRAINS BETWEEN ETOWAH, TENN., AND TATE, GA., 
AND BETWEEN TATE, GA., AND ELIZABETH, GA., ON ITS 
ATLANTA DIVISION OLD LINE 

Order 

This matter coming on to be heard upon the petition of Louisville & 
Nashville Railroad Company, after due notice to the authorities of the 
Town of Murphy, N. C, and it appearing that no answer has been made 
to the petition and no objection has been received by the Utilities Com- 
mission to any of the matters set out in the petition: 

It is now ordered that Louisville & Nashville Railroad Company be, 
and it is hereby, authorized: 

First: To spend approximately $4,500 in strengthening three Murphy 
branch bridges and reducing the curvature on its "Y" at Murphy, so as 
to condition the line for operation of heavier locomotives of the type 
now operated in local freight trains Nos. 13 and 14 between Etowah, 
Tenn., and Tate, Ga. 

Second: In lieu of the present mixed freight and passenger trains 
operated on the Murphy Branch, to substitute one round trip daily (except 
Sunday) between Blue Ridge, Ga., and Murphy, N. C. (insofar as the 
authority of this Commission may be exercised in a matter of interstate 
commerce), to be operated on the same schedules as present trains Nos. 
109 and 110 in the following manner: 

North End local freight trains Nos. 13 and 14 to be operated between 
Etowah, Tenn., and Murphy, N. C, via Blue Ridge, Ga., one round trip 
daily (except Sunday). Trains Nos. 13 and 14 will carry freight and 
passengers between Blue Ridge and Murphy in lieu of the present mixed 
passenger and freight trains operated on the Murphy Branch. These 
trains will operate on the following schedule at Murphy, N. C: No. 14 
will leave Murphy 9:20 A. M. No. 13 will arrive at Murphy at 2:10 P. M. 

The authority granted herein to change the freight and passenger 



Decisions and Adjustments of Complaints 199 

service shall not be effective unless and until the line improvements 
herein authorized have been made by petitioner. 

This 20th day of December, 1935. 

By order of the Utilities Commission. Stanley Winborne, 

R. 0. Self, Chief Clerk. . Utilities Commissioner. 

Docket No. 615. 

IN THE MATTER OF APPLICATION OP NORFOLK SOUTHERN RAIL- 
ROAD COMPANY TO DISCONTINUE COMMERCIAL TELEGRAPH 
SERVICE AT BAILEY, NORTH CAROLINA 

Order 
This application came on for hearing at 11:00 o'clock, a. m., on July 
30, 1935, at Raleigh. Superintendent L. P. Kennedy of New Bern, N. C, 
represented the Norfolk Southern Railroad Company and the following 
parties, all of Bailey, were present in protest against closing the telegraph 
office: 

Messrs. J. W. Privette, M. H. Griffin, H. L. Baker, J. W. Christian, 
K. F. Lewis, A. B. Farmer, and R. W. Jones. 

After a showing by the Norfolk Southern Railroad Company to the 
effect that earnings at Bailey have greatly shrunk up and it is felt that 
the Company must reduce expenses where it could do so and that the 
telegraph service could be abandoned and save about $50.00 per month. 
The present salary of the agent is $122.72 per month, plus Express and 
Western Union commissions. 

Mayor Griffin of Bailey stated that he was amazed to know how much 
the railroad revenue had fallen off. The delegation of citizens requested 
another chance and wanted to go home and inform the people of the true 
condition and do all in their power to improve the railroad revenue. 

Mr. Kennedy thereupon requested that the case be postponed indefi- 
nitely upon the belief that the gentlemen were talking in good faith. 

Whereupon the Commissioner stated the case was indefinitely post- 
poned. 

This 31st day of July, 1935. 

By order of the Commissioner: Stanley Winborne, 

Attest : Commissioner. 

R. 0. Self, Chief Clerk. 

Docket No. 381. 

IN THE MATTER OF APPLICATION OF NORFOLK SOUTHERN RAIL- 
ROAD COMPANY (M. S. HAWKINS AND L. H. WINDHOLZ, RECEIV- 
ERS), APPLYING FOR PERMISSION TO CLOSE THE AGENCY AT 
GRIMESLAND, N. C, MAKING SAME A PREPAY POINT UNTIL 
AUGUST 8TH, 1937 

Order 
The above case came on for hearing before Commissioner Winborne at 

10:00 o'clock, a. m., Wednesday, November 27, 1935. Petitioner was 

represented by L. P. Kennedy, Superintendent, New Bern, N. C, and R. 

L. Ford, Norfolk, Virginia. No one appeared for protestants. 



200 ]^. C. Utilities Commission 

Petitioner's witness Ford testified to the effect that the petitioner's 
first petition to close the agency at Grimesland and make same a prepay 
station was filed in May, 1933, the fact being overlooked that the deed 
conveying the right-of-way and station lot, held by the Norfolk Southern 
Railroad Company for certain properties owned by the Grimes' interests, 
contained a clause necessitating the maintenance by the railroad company 
of an agent during effectiveness of the deed. When said clause was called 
to its attention petitioner withdrew the application without prejudice 
subject to renewal at a later date. An agreement from the Grimes' 
interests has now been obtained (introduced in the record as Exhibit 
No. 1) permitting the closing of the agency for a period of two years with 
caretaker in charge, the date of the agreement being June 30, 1935. (The 
names of signers of the agreement were not furnished but it was stated 
that they would be supplied if desired.) 

Statement of gross earnings for eight months ending August 31, 1935, 
shows revenue of $2,121.6 6, fifty per cent of whi<3h is creditable to 
Grimesland while the other fifty per cent is creditable to the origin or 
destination of the traffic, or $1,0 60.83. The agent's salary for the yeaf 
is $750.00. The incidentals and supplies for the station, it is said, would 
bring the expenses up to around $1,000.00 per year. 

Protestants, Town of Grimesland, represented by its attorney. Judge 
Albion Dunn, who appears to think the railroad desires to discontinue 
the station as well as its agency, filed its petition or answer to the Norfolk 
Southern Railroad Company's application under date of October 17, 19 3 5, 
and includes resolutions of the Board of Aldermen of the Town setting 
forth facts to the effect that if the application be granted it would greatly 
inconvenience and prejudice the citizens of the town; that the section 
would suffer great hardships and inconvenience; that the nearest station 
agency would be eight miles distant from Grimesland, furthermore, such 
act would be in direct violation of covenants and agreements in the deed 
conveying the land for the railroad right-of-way and its station grounds 
and ought not be permitted; that the parties originally conveying the 
grounds are without authority now to come and modify the terms of the 
covenants of said deed, the so-called alleged interests not being located 
in the Town of Grimesland and have no interests whatever either near 
or remote in the continuance or discontinuance of said station. 

The Commissioner is of the opinion and so finds that the Norfolk 
Southern Railroad Company, being in the hands of Receivers, must 
operate the property with all reasonable economy and upon a showing as 
here occurs that the revenues of the railroad at Grimesland approximate 
the expenses of maintaining an agency which can be dispensed with at 
a little or no inconvenience to the shipping public, is entitled to do so for 
a period ending June 30, 1937, the period applied for by applicant. 

It is, tiiekefohk, orderkd. That the Norfolk Southern Railroad Company 
(M. S. Hawkins and L. H. Windholz, Receivers) be and it is hereby 



Decisions and Adjustments of Complaints 201 

authorized to close its agency at Grimesland and directed to establish in 
lieu thereof a caretaker, effective January 1, 1936, until and for a period 
ending June 3 0, 19 3 7. 

This 19th day of December, 1935. 

By order of the Commissioner: Stanley Winborne, 

Attest: Commissioner. 

R. O. Self, Chief Clerk. 
Docket No. 557. 

IN THE MATTER OP APPLICATION OF NORFOLK SOUTHERN RAIL- 
ROAD COMPANY (M. S. HAWKINS AND L. H. WINDHOLZ, RECEIV- 
ERS), TO CLOSE ITS STATION AT HALLISON, N. C, MAKING SAME 
A NON-AGENCY PREPAY POINT 

Order 

Hearing upon the above application was had at the office of the Com- 
mission in Raleigh, January 18, 1935. The Norfolk Southern was repre- 
sented by General Superintendent C. P. Dugan; Superintendent L. P. 
Kennedy, and Mr. R. L. Ford, while protestants were represented by 
Hon. W. R. Clegg, attorney of Carthage, and J. Q. Reynolds and R. H. 
Upchurch of High Falls, and 0. T. Parks of Hallison. 

Testimony of applicant showed great falling off in recent years in 
earnings of the station. During first eleven months of 19 34, total freight 
earnings were $1861.21 and the salary of the agent during the same 
period was $1155.00. In 1934 earnings of the station were 75 per cent 
less than in 1931 and 42 per cent less than in 1932. Under the law an 
increase of 2 1/^ per cent in the agent's salary must be made January 1, 
1935 and 5 per cent additional on April 1, 1935. The agent's present 
salary is $114.82 per month. Applicant stated that if the telegraph 
agency could be converted into a non-telegraph station, great savings 
v/ould result to the Norfolk Southern Railroad which is now in receiver- 
ship. 

Citizens of Hallison and vicinity contended that closing the agency 
would be a great inconvenience and; therefore, a great detriment to the 
public; that business is picking up and the railroad is bound to benefit. 
Protestants particularly emphasized the serious loss of the telegrapn 
office; however, it was pointed out that telephone service could be had 
from High Falls to Hemp (a telegraph office) just as easily as to Hallison. 
After hearing the evidence the Commissioner announced his decision. 

It is, therefore, ordered. That the Norfolk Southern Railroad, M. S. Haw- 
kins and L. H. Windholz, Receivers, be and it is hereby authorized to 
discontinue its telegraph agency at Hallison, making same a non-telegraph 
agency, effective on or before February 15, 1935. 

By order of the Commission: 

This 21st day of January, 1935. Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner. 

Docket No. 278. 



202 ]^. C. Utilities Commission 

IN THE MATTER OF APPLICATION OF NORFOLK SOUTHERN RAIL- 
ROAD COMPANY (M. S. HAWKINS AND L. H. WINDHOLZ, RECEIV- 
ERS), TO CLOSE ITS STATION AT HALLISON, N. C, MAKING SAME 
A NON-AGENCY PREPAY POINT 

Amendment to Order Dated January 21, 1935 
Ordering paragraph of the above order is hereby amended to read: 
It is ordered, That the Norfolk Southern Railroad Company (M. S. Haw- 
kins and L. H. Windholz, Receivers), be and it is hereby permitted to 
make Hallison, N. C, a Star Agency on or before February 15, 1935. 
By order of the Commission: 
This 7th day of February, 1935 Stanley Winborne, 

R. O. Self, Chief Clerk. Commissioner. 

Docket No. 278. 

IN THE MATTER OF PETITION OF THE NORFOLK-SOUTHERN RAIL- 
ROAD COMPANY TO WITHDRAW THE COMMERCIAL TELEGRAPHIC 
SERVICE AT ITS STATIONS IN NORTH CAROLINA AT VANCEBORO, 
WEST END, ELLERBE, SUNBURY, MT. GILEAD, BAILEY, ROPER, 
ORIENTAL, MIDLAND, CRESSWELL, BAYBORO, BISCOE, LILLING- 
TON, LA GRANGE AND OAKBORO, FILED MAY 1, 1935. 

Order 

In the above entitled application made by the Norfolk-Southern Railroad 
Company, under its general application dated May 1st, 1935, and its several 
specific applications as to each of the several stations dated June 27, 1935, no- 
tice was duly given to the public and said cases were set for trial. In the 
cases of Sunbury, Roper, Cresswell, Bayboro and Oriental evidence was of- 
fered both by the petitioner and the protestants, while in the other cases 
there was no appearance in opposition to the granting of the application and 
only the petitioner was heard. The same questions were involved in all of 
the cases and hence this one order applicable to the petitions for the clos- 
ing of commercial telegraphic service at Vanceboro, West End, Ellerbe, 
Sunbury, Mt. Gilead, Bailey, Roper, Oriental, Midland, Cresswell, Bayboro, 
Biscoe, Lillington, LaGrange and Oakboro. 

At each of said public hearings it was fully developed that the Norfolk- 
Southern Railroad Company, through its receivers, M. S. Hawkins and L. H. 
Windholz, alone made application for the closing of the commercial tele- 
graph office at the several respective stations; that the said railroad, in it- 
self, does not conduct or maintain a commercial telegraphic station at said 
points, but that the commercial telegraphic service at said stations is con- 
ducted and maintained by the Western Union Telegraph Company; that the 
agent of the railroad company is likewise agent of the Western Union Tele- 
graph Company by virtue of a contract between the said railroad company 
and the telegraph company; that the railroad company is not authorized by 
its charter to engage in the telegraph business and that it has never, nor 
does it now, hold itself out as engaging in the telegraph business except for 
its own convenience and that of the public it has allowed the telegraph com- 
pany, for a consideration, to use its offices and its agent in carrying on the 



Decisions and Adjustments of Complaints 203 

business of the Western Union Telegraph Company; and that the Western 
Union Telegraph Company is alone responsible to the public for the provid- 
ing of telegraphic service at said several stations. 

It was further contended by the railroad company that, since it was not 
authorized by its charter to engage in the telegraphic business, it could not 
be required to do so further than it had obligated itself under its contract 
with the Western Union Telegraph Company; and that the enforcement of 
contract was a matter between the telegraph company and the railroad. 

Upon the foregoing facts and contentions presented by the railroad com- 
pany, the protestants in the several cases, and especially in the cases of Roper 
and Cresswell, through their attorney. Honorable Carl Bailey, contended that, 
if the railroad company was not authorized to engage in the commercial 
telegraph business and could not, therefore, be required to provide commer- 
cial telegraphic service, and since the Western Union Telegraph Company 
had made no application to close the several stations, the application of the 
railroad company had no standing before the Commission; therefore, it was 
moved that the application of the railroad company to close said commercial 
telegraphic station be dismissed. 

Cases similar to the instant cases have been before the Commission many 
times, and in several hearings it has been intimated that only the telegraph 
company was the proper party to ask for the discontinuance of a telegraph 
oflace, but the question has never been squarely presented to the Commis- 
sion until in these instant cases, and in most cases was not urged, for the 
reason that the protestants were convinced that the income from the tele- 
graphic business was so small that they did not feel justified in objecting to 
the discontinuance of the office. 

With the issue now squarely before the Commission, upon the motion afore- 
said and after a full consideration of the matter, the Commission has reached 
the conclusion that, upon the facts before it in these cases, the railroad com- 
pany could not be heard to ask for the discontinuance of a service which, 
by its charter, it is not authorized to engage in, and that since it further 
does not appear that it is authorized by its principal, the Western Union 
Telegraph Company, for whom it acts as agent under a contract, to apply for 
discontinuance of telegraphic service at the several stations, the motion 
must be allowed and the application of the Norfolk-Southern Railroad Com- 
pany to close the several stations, hereinbefore mentioned, be dismissed. 

It appears that since the institution of this proceeding, the railroad com- 
pany has voluntarily withdrawn its application to close the telegraph of- 
fice at several of the stations hereinbefore enumerated; however, in view of 
the conclusions reached in this order, the exception of those stations from 
this order is immaterial. 

Wherefore, it is ordered, That the applications of the Norfolk-Southern 
Railroad Company to discontinue and close the telegraph office at the sev- 
eral stations mentioned in the caption of this order, be and the same are 
hereby dismissed. 

This 30th day of September, 1935. 

By order of the Commission: Stanley Winborne, 

(Seal) R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 381. 



204 N. C. Utilities Commission 

IN THE MATTER OF JOINT DEPOT FACILITIES AT VARINA, N. C. 

It appearing that the Norfolk-Southern Railroad Company did on June 
26th, 1936, apply to this Commission in writing for authority to construct, 
operate and maintain an independent freight and passenger station for serv- 
ing the general public at Varina, stating that the Durham & Southern Rail- 
road Company has terminated their joint agreement, effective since July 8, 
1912, providing for the joint use of the present depot for both freight and 
passengers. It further appearing that on June 23rd the citizens of Fuquay- 
Varina vicinity petitioned this Commission seeking the invocation of our 
powers to continue the maintenance of the station at Varina as a union sta- 
tion for freight and passengers by both Norfolk-Southern and Durham & 
Southern Railroad. It further appearing that the Commission has been un- 
able after due effort by negotiation and diplomacy to have these carriers 
settle their differences in an amicable way and continue the joint use of the 
present station, 

It is, therefore, ordered, That the Durham & Southern Railway and Nor- 
folk-Southern Railroad Company, M. S. Hawkins and L. H. Windholtz, re- 
ceivers, be and they are hereby cited to appear before the Utilities Commis- 
sion at Raleigh on Tuesday, November 24th, at 10 o'clock a. m. and then and 
there show cause, if there be any, why the present depot facilities at Varina 
which has been in joint use between the lines at that point, should not be 
continued in effect with any necessary repairs or extensions made which 
might enhance its convenience for public use. 

By order of the Commissioner: 
R. 0. Self, Chief Clerk. Stanley Winborne, 

Raleigh, N. C, October 21, 1936. Utilities Commissioner. 

Docket No. 756. 

IN THE MATTER OF THE JOINT DEPOT FACILITIES AT VARINA, N. C. 

Order 

This cause coming on before the Commission as a result of a citation in 
the above matter requiring interested parties to appear before the Commis- 
sion at Raleigh on November 24 and show cause, if there be any, why the 
Durham & Southern Railroad and the Norfolk-Southern Railroad should not 
be required to continue to operate the present depot facilities at Varina 
jointly. 

In accordance with prior engagement, these railroad companies, represented 
respectively by Mr. W. T. Gill, Vice-President and General Manager of the 
Durham & Southern Railroad, and Mr. L. P. Kennedy, General Superintend- 
ent of the Norfolk-Southern Railroad, appeared at the Commissioner's of- 
fice on November 23 and reached an agreement whereby the passenger depot 
facilities and agency forces at Varina are to be continued as a joint opera- 
tion for both companies with some additional adjacent facilities for freight 
handling by the Norfolk-Southern Railroad at that place. 

Copy of the agreement is now on file in the office of the Utilities Commis- 
sioner and may be inspected by any interested party. In view of the settle- 



Decisions and Adjustments of Complaints 205 

ment of this matter, which the Commissioner believes will be in every way 
satisfactory to the Fuquay-Varina vicinity shipping public, it is 

Therefore ordered. That the above proceeding be and the same is hereby 
dismissed. 

This 24th day of November, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 756. 

IN THE MATTER OF APPLICATION OF SEABOARD AIR LINE RAIL- 
WAY (L. R. POWELL, JR., AND HENRY W. ANDERSON, RECEIVERS), 
FOR AUTHORITY TO DISCONTINUE THE AGENCY AT ABBOTTS- 
BURGH, N. C, AND TO SUBSTITUTE A COVERED SHED AND SMALL 
FREIGHT ROOM FOR THE PRESENT DEPOT. 

Order 

The above application, dated October 22, 1935, came on to be heard and 
was heard before Commissioner Winborne at Raleigh on November 27, 1935. 
Appearances : 

For applicant, W. L. Stanley and R. W. Rogers. 

For Protestants, T. F. Johnson, D. F. McKeithan, E. B. Skipper of Ab- 
botsburg. 

Abbotsburg is located on applicant's line between Hamlet and Wilmington. 
It has been shown that business has diminished until for twelve months, 
July 1, 1934, to June 30, 1935, inclusive, total earnings were $1,857.60. Of this 
amount the freight earnings amounted to $1,611.78, and passenger earnings to 
$245.82. For the six months, July 1, 1935, to December 31, 1935, inclusive, 
freight earnings amounted to $267.87 only, and passenger revenue, $146.32, 
or a total of $414.19. 

The agent's salary is $60.00 per month. The total earnings, both freight 
and passenger, at Abbottsburg are shown by years as follows: 1930, $9,039.62; 
1931, $3,247.89; 1932, $667.59; 1933, $910.37; 1934, $1,162.95. Mr. Rogers, su- 
perintendent for the Seaboard, testified: "We are maintaining an agent to 
serve on one freight shipment every three days, and one and a half tickets 
every day inbound freight is largely prepaid. In checking the petition, only 
seven or eight signers received freight." 

Mr. Rogers further testified: "The present freight station is in bad shape 
which is the reason why we are asking for a covered shed and freight room." 
Protestants, largely represented by Mr. Johnson, testified : "The people ex- 
pect to do more business this year than last. I have been partial to the 
railroad. Abbottsburg is still suffering from the depression but plans are in 
the making for timbering again and I believe the railroad should hold on a 
little longer. I want to see the station remain." 

The Commission received a petition signed by 70 citizens of Abbottsburg 
and vicinity seeking continuance of the agency. The Commission also re- 
ceived several letters from business men endorsing the idea of keeping the 
agency at Abbottsburg. Congressman Clark of the law firm of Dye and Clark, 
Fayetteville, filed a brief on behalf of the citizens in which he points out the 



206 JS". C. Utilities Commission 

small salary of agent, the fair condition of the station house which Mr. Mc- 
Keithan claimed had been repaired and top painted within a year and argues 
further for keeping the agency at Abbottsburg. 

It should, of course, be understood the Commission has no desire to see 
any agency closed and has taken precautionary measures to see that each 
and every application is closely surveyed before authorizing the closing of 
any agency. It will be noted this agency has been losing ground for several 
years and has now reached a point where, when the forwarding agency is 
given credit for half of the revenue and the receiving agency for the other 
half, this agency would not amount to but slightly more than the agent's 
salary. It is, therefore, the opinion of the Commissioner and it is so held 
that the station revenue is insufficient to require the maintenance of an 
agency at Abbottsburg, but that the station building be kept intact, which ap- 
pears to be the desire of the protestants, in the hope that when the depres- 
sion is ended and business returns, the agency may likewise be restored when 
the business justifies that move. 

It is, therefore, ordered. That the Seaboard Air Line Railway (L. R. Pow- 
ell and H. W. Anderson, receivers) be and it is hereby authorized to discon- 
tinue its agency at Abbottsburg effective on or before March 15th, 1936; 

It is further ordered, That that part of the application asking that the 
present depot be dismantled be denied. 
This 20th day of February, 1936. 
By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner. 

Docket No. 561. 

IN THE MATTER OF APPLICATION OF SEABOARD AIR LINE RAIL- 
WAY, (L. R. POWELL, JR., AND HENRY W. ANDERSON, RECEIVERS), 
FOR AUTHORITY TO DISCONTINUE THE AGENCY AT PEE DEE, N. C, 
AND MAKE SAME A PREPAY STATION. 

Order 

Coming on to be heard before the Commission at 10 o'clock a. m., Wednes- 
day, October 2d, 1935, application of the Seaboard Air Line Railway (L. R. 
Powell, Jr., and Henry W. Anderson, Receivers), dated August 1, 1935, seek- 
ing to discontinue Pee Dee agency, and sets out that Pee Dee, N. C, is lo- 
cated on the main line between Hamlet and Monroe and that total revenue 
from freight, both received and forwarded, during yearly period ending April 
30, 1935, was $628.73 and passenger earnings $154.04, total $782.77. The 
agent's salary for the period was $795.20. 

The Commission requires that ample notice of such applications be given 
and this was done by posting notice at the station for fifteen days, and an 
affidavit furnished the Commission indicating that this was done. 

The Commission received on July 20th a petition signed by Mrs. Martha 
W. Bacon and others, which petition was canvassed as to business done by 
signers of the petition and others in detail at the hearing, October 2d, to- 
gether with Messrs. Murray Allen, attorney, and R. W. Rogers, superintend- 
ent, both Seaboard Air Line representatives who appeared at the hearing. 



Decisions and Adjustments of Complaints 207 

No complainant or protestant appeared at the hearing, although due notice 
was mailed to two names and addresses appearing upon the petition of pro- 
test. 

The Commission is of the opinion and so finds that the business of the 
Seaboard Air Line Railway at Pee Dee is insufficient to justify continuance 
of its agency when earnings and expenses are considered; and it is 

Therefore ordered, That the Seaboard Air Line Railway (L. R. Powell 
and Henry W. Anderson, Receivers) be and it is hereby authorized to close 
its agency at Pee Dee, N. C, on or before October 15, 1935, making the sta- 
tion a regular prepay point. 

By order of the Commissioner: 

This 7th day of October, 1935. Stanley Winborne, 

R. 0. Self, Chief Clerk. Gom^nissioner. 

Docket No. 495. 

IN RE: CONDEMNATION OF RIGHT-OF-WAY FOR ROOSEVELT AVE- 
NUE IN THE TOWN OF WAKE FOREST. 

Order 

This cause coming before the Commission upon the petition of the Town 
of Wake Forest, North Carolina, through its Mayor, S. W. Brewer, asking for 
a certificate of public convenience and necessity to construct and provide an 
underpass under the tracks and through the right-of-way of the Seaboard Air 
Line Railway in said town, as required by Chapter 470, Section 25, of the 
Public Laws of 1935. 

The petition having been duly filed on April 8, 1936, and notice of the hear- 
ing on April 18, having been published in the newspaper and served on the 
Seaboard Air Line Railway and other interested parties in the Town of Wake 
Forest, and there being no objection made to the granting of said certificate 
presented on the day set for the hearing, and the undersigned Commissioner 
being of the opinion that the construction of said underpass and the ap- 
proach thereto will be in the general public interest and are necessary to 
best serve the public convenience, it is now, on motion of Messrs. Little and 
Wilson, attorneys for the petitioner. 

Ordered and adjudged, That said certificate of convenience and necessity 
be and the same is hereby granted to construct said underpass and ap- 
proaches thereto, as indicated on a map filed with the petition as a part 
thereof and fully described and set out in Section 3 of said petition, which 
description is referred to and made a part of this order as fully as if set out 
herein. 

This 18th day of April, 1936. 

By order of the Utilities Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk Utilities Commissioner. 

Docket No. 708. 



208 N^. C. Utilities Commission 



IN THE MATTER OF APPLICATION OF THE SOUTHERN RAILWAY 
COMPANY TO DISCONTINUE AGENCY AT CUNNINGHAM, N. C, AND 
MAKE SAME A PREPAY STATION. 

Order 

Hearing on above application, which is dated January 7, 1935, was held 
on this date at Raleigh. The Southern Railway Company was represented 
by Mr. M. C. Glenn, Assistant Superintendent, and Mr. D. E. Clark, Train- 
master. Opponents appearing against the application being granted were 
S. M. Green, W. F. Hudson and R. F. Murray. 

The application shows that Cunningham is in Person County between 
Semora, N. C, an agency station 4.9 miles distant, and Alton, Va., an agency 
station 5.6 miles distant. 

The revenue from both freight and passengers at this station was: 

Year Revenue 

1929 $7,308.98 

1930 5,203.47 

1931 3.911.70 

1932 2,396.73 

1933 1,088.60 

1934 1,039.81 

1935 January 57.87 

February 16.76 

March 88.27 

Opponents were heard and each admitted that business is dull with the 
railroad and that trucks do the largest business at Cunningham and would 
probably continue to do so. 

The Commission is of the opinion and so finds that the business at this 
station is not sufficient to require continuance of the agency. 

It is, therefore, ordered, That the application to discontinue the agency 
at Cunningham and make same a prepay point is hereby approved, effective 
June 15, 1935. 

This 28th day of May, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk Commissioner. 

Docket No. 280. 

IN THE MATTER OF APPLICATION OF SOUTHERN RAILWAY COM- 
PANY TO DISCONTINUE ITS AGENCY AT ELA, N. C, IN SWAIN 
COUNTY AND MAKE SAME A PREPAY STATION. 

Order 

Comes now Southern Railway Company by petition dated October 14, 1935, 
and seeks to make Ela, N. C, a pre-pay station, and recites that this station 
is on its Murphy branch between Whittier and Bryson, N. C. — 2.2 miles from 
the former and 4.3 miles from the latter — both points being agency stations. 
Highway No. 10 runs within one-quarter of a mile of the station at Ela. 

The agency at Ela was made necessary on account of Appalachian Railway 



Decisions and Adjustments of Complaints 209 

running therefrom. This line has now been abandoned and will be removed 
entirely. Passenger trains will continue to stop on flag at Ela. 

Under our rules of procedure notice was posted at Ela on September 23d, 
reading as follows: 

"After 15 days from date hereof the Southern Railway Company will 
make application to the North Carolina Public Utilities Commission for 
permission to close station known as Ela, N, C, and same will be made 
a prepay station." 

Affidavit accompanies the application stating that the notice was posted 
and remained posted for fifteen days. No complaints have reached the Com- 
mission. Revenue statement accompanying the application shows for the 
year, October, 1934 to September, 1935, inclusive, freight received $2,180.14, 
forwarded $1,001.86. Forwarded, carload, $3,169.20, less carload, $81.87. Pas- 
sengers, $267.02. Average expense of the station is $127.40 per month. These 
figures include earnings of other railroads participating in the freight move- 
ment. 

The Commission is of the opinion and so finds that due to struggle of the 
Southern Railway "to carry on" along with other rail carriers, it should not 
be required to maintain an agency that has served its purpose and has 
reached a stage where it is an unreasonable expense. 

It is, therefore, ordered. That the Southern Railway Company be and it 
is hereby authorized to discontinue its agency at Ela, N. C, effective Novem- 
ber 15, making the station a regular prepay point. . . 

This 30th day of October, 1935. 

By order of the Commissioner: Stanley Winborne, 

Attest : Commissioner. 

R. 0. Self, Chief Clerk. 

Docket No. 566. 

IN THE MATTER OF APPLICATION OF SOUTHERN RAILWAY SYSTEM 
TO CLOSE ITS AGENCY AT HARRISBURG, (CABARRUS COUNTY), 
N. C, MAKING SAME A PREPAY STATION. 

Order 

This application was heard at Raleigh, January 18, 1935. The Southern 
Railway was represented by Superintendent M. 0. Dunbar of Charlotte, and 
Assistant Suprintendent M. C. Glenn of Greensboro; the petitioning citizens 
of Harrisburg and community were represented by Mr. J. F. Harris, who op- 
posed the abolishment of the agency. 

Cash remittances from the station were shown to amount to an average of 
$58.30, and monthly expenses about $45.42. There are no telegraph and ex- 
press services at the station at present and the mail service is taken care of 
by the United States Post Office Department. 

Applicant and protestant seemed to agree about the earnings at the sta- 
tion. Protestant contended that the inconvenience to the public would con- 
sist largely of depriving them of telephone service and a place for passengers 
to be protected in bad weather. The Commission ruled and, it is therefore 

Ordered, That the application be and the same is hereby granted to make 
this station a regular prepay point on or before February 15, 1935. 



210 ^. C. Utilities Commission 

It is further ordered, That the Southern Railway Company place a care- 
taker in charge of the station who shall at all proper times keep the waiting 
rooms open and look after the security of freight. 

By order of the Commission: 

This 19th day of January, 1935. Stanley Winborne, 

R. 0. Self, Chief Clerk. Commissioner. 

Docket No. 251. 

IN THE MATTER OF APPLICATION OF SOUTHERN RAILWAY COM- 
PANY TO CLOSE ITS AGENCY AT UNION MILLS, N. C, AND MAKE 
SAME A PREPAY STATION. 

Order 

Coming on to be heard before the Commissioner according to notice at 11 
o'clock a. m., on Wednesday, October 2, 1935, the above cause was heard by 
Commissioner Winborne. 

Appearances for Applicant: 

M. C. Glenn, Assistant Superintendent Southern Railway, Greensboro, 
N. C. 

J. T. Moon, Superintendent, Southern Railway, Charleston, S. C. 
G. W. Ashby, Trainmaster, Southern Railway, Greensboro, N. C. 

Appearances for Protestants: 

W. E. Sweatt, Superintendent, Alexander Schools, Inc., Union Mills, 
N. C. 

Dean Smith, Union Mills, N. C. 
C. F. Keater, Union Mills, N. C. 
W. G. Scoggin, Union Mills, N. C. 

This application is dated December 13, 1934, and shows revenue statement 
at Union Mills station for one year beginning October, 1933, and including 
September, 1934— total revenue $2,988.29; average monthly $249.02. The 
agent's salary is $70.00 monthly. Other expenses $5.00 per month. Of the 
total revenue $301.00 is passenger and remainder freight. Southern Railway 
earnings at Union Mills have been: 

1929 $4,489.20 

1930 2,862.53 

1931 3,480.15 

1932 2,645.76 

1933 3,004.85 

1934 2,988.29 

1935 (8 months) 1,914.26 

The Southern Railway's intention is to reduce expenses and where that 
can reasonably be accomplished it seeks that end. Protestants say South- 
ern Railway has already closed one office south and two north of them and 
to abolish this agency would leave practically 25 miles without an agent and 
their telephone system of little value. "When the Railroad was built," said 
Mr. Sweatt, "Rutherford County gave $100,000 to have the line run through 
the county. Just finished paying this about five years ago. Southern Rail- 
way is not prospering but the folks have suffered also. We come reflecting 
community sentiment, asking that we receive some consideration." 



Decisions and Adjustments of Complaints 211 

The Commission is of the opinion and so finds that the question is a close 
one, yet it is true that the revenue at Union Mills has not shrunk as greatly 
as at some other places we have been called upon to consider. Moreover, 
the agency has been reduced to a non-telegraph station and the pay of the 
agent accordingly. In view of the entire situation the Commission will let 
the matter remain an open question for a year longer. 

It is, theeefoke, ordered, That the application of the Southern Railway 
Company to close its agency at Union Mills, N. C, and make same a prepay 
point, be and the same is hereby denied and the subject deferred for a pe- 
riod of twelve (12) months after which time, if necessary, the Commission 
will expect again to hear further from applicant. 

This 23d day of October, 1935. 

By order of the Commissioner: Stanley Winborne, 

Attest : Commissioner. 

R. O. Self, Chief Clerk. 

Docket No. 263. 

Atlantic and North Carolina Railroad Cpmpany to the Commission. 
Application for authority to abandon Bests and Wildwood as agency 
stations. Granted. Docket No. 843. 

Atlantic and North Carolina Railroad Company. Complaint by the 
Mayor of Beaufort in re discontinuance of Sunday trains into Beaufort 
and train service per day. Mayor advised that solution of the problem 
depended largely on action of Interstate Commerce Commission on petition 
of the Atlantic and North Carolina Railroad for a certificate of con- 
venience and necessity to be heard jointly with petition of Norfolk South- 
ern Railroad to abandon its road from Morehead City to Beaufort. Closed. 
Docket No. 68 5. 

Atlantic Coast Line Railroad Company to the Commission. Application 
for authority to discontinue agency at Hampstead and make same prepay 
station. Granted. Docket No. 23 5, 

Atlantic Coast Line Railroad Company to the Commission. Application 
for authority to abandon frame building depot at McNatts. Granted. Docket 
No. 311. 

Atlantic Coast Line Railroad Company to the Commission. Application 
for authority to discontinue agency at Speed and make same prepay 
station. Protest filed, and application held in abeyance. Docket No. 214. 

Atlantic Coast Line Railroad Company vs. Carolina Telephone and 
Telegraph Company. Complaint of telephone rental in station at Smith- 
field. Adjusted. Docket No. 775. 

Atlantic Coast Line Railroad Company and Southern Railway Company. 
Matter of breaking connection between Atlantic Coast Line train No. 82 
and Southern Railway train No. 111. Taken up with companies by the 
Commission. Commission advised by Southern Railway that it would have 
to break very important connections at Greensboro if it met the change 
made by A. C. L. Closed. Docket No. 7 83. 

Clinchfield Railroad Company to the Commission. Application for author- 
ity to discontinue agency at Altapass for freight, express, telegraph and 



212 N". C. Utilities Commission 

passengers. Matter continued until further date, and nothing further 
having been heard from petitioner, case closed. Docket No. 401. 

Durham and Southern Railway Company. Petition by Dunn Ice and 
Fuel Company to have siding placed on free list for switching. Dismissed. 
Docket No. 424. 

East Tennessee and Western North Carolina Railroad Company to the 
Commission. Petition for authority to Inaugurate Sunday service over 
its line in connection with its truck and bus service. Granted. Docket 
No. 471. 

Louisville and Nashville Railroad Company to the Commission. Appli- 
cation for authority to close agency at Culberson and place a caretaker 
in charge of station. Objection filed, and petitioner asks that matter 
remain in statu quo until further advised. Nothing further having been 
heard from petitioner, case is closed, subject to reopening. Docket 
No. 310. 

Norfolk Southern Railroad Company (M. S. Hawkins and L. H. Wind- 
holz. Receivers) to the Commission. Application to discontinue telegraph 
office at Seagrove. Protest filed and application withdrawn temporarily. 
Nothing further having been heard from applicant, case closed. Docket 
No. 54. 

Norfolk Southern Railroad Company (M. S. Hawkins and L. H. Wind- 
holz, Receivers) to the Commission. Application for authority to discon- 
tinue operation of trains Nos. 30 and 31 in and out of Raleigh Union 
Station, establishing suitable facilities at Jones Street station for handling 
passengers, mail and express. Granted. Docket No. 2 61. 

Norfolk Southern Railroad Company (M. S. Hawkins and L. H. Wind- 
holz. Receivers) to the Commission. Application for authority to discon- 
tinue operation of trains Nos. Ill and 112 between New Bern and Wash- 
ington on Sundays. Granted. Docket No. 368. 

Norfolk Southern Railroad Company (M. S. Hawkins and L. H. Wind- 
holz. Receivers) to the Commission. Application for authority to inaugu- 
rate rail motor passenger service on line between Raleigh and Washington. 
Granted. Docket No. 2 85. 

Rockingham Railroad Company to the Commission. Application for 
permission to discontinue passenger service over its line. Granted. 
Docket No. 573. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue services of caretaker at Elkton. Application held in abeyance, 
and nothing further having been heard from petitioner, case closed. 
Docket No. 210. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
combine passenger and freight depots at Marshville. Approved. Docket 
No. 496. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 



Decisions and Adjustments of Complaints 213 

move present freight and passenger depots at Marston and construct com- 
bination freight and passenger station. Approved. Docket No. 333. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
dismantle depot at Middleburg. Approved. Docket No. 697. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
dismantle depot at Millbrook and substitute small shed in lieu thereof 
near the present station building. Granted. Docket No. 351. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue telegraph office at New Hill. Withdrawn. Docket No. 422. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
dismantle depot at Paschall. Approved. Docket No. 6 9 8. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue agency at Shaleton. Granted. Docket No. 287. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue services of caretaker at Pendleton. Granted. Docket No. 211. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers). Petition of citizens of Summit for passenger 
shelter at that point. Adjusted. Docket No. 233. 

Seaboard Air Line Railway Company (L, R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
dismantle depot at Thelma and substitute therefor shed. Granted. Docket 
No. 745. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
eliminate from time tables as conditional stops for trains Nos 3 and 4 the 
following: Addor, Cognac, Lakeview, Manley, Marston, Method, Merry 
Oaks, Middleburg, Millbrook, Pinebluff, and Ridgeway. Granted as to 
Addor, Manley, Method, Millbrook and Pinebluff. Application as to 
Merry Oaks, Marston, Middleburg and Ridgeway withdrawn. Docket 
No. 243. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
make change in mixed trains service on Pittsboro Branch, with the view 
of improving freight. Protest filed. Action postponed. No further infor- 
mation having been received from applicant, case closed. Docket No. 215. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue passenger service on trains Nos. 15 and 16 between Monroe 
and Charlotte, Granted. Docket No. 268. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application of editor of Sand- 



214 ]^. C. Utilities Commission 

hill Citizen for stopping of train No. 4 at Vass to pick up newspapers. 
Adjusted. Docket No. 323. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue Wadesboro and Rockingham as conditional stops for train 
No. 10. Granted. Docket No. 365. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue Marshville as conditional stop for train No. 6. Approved. 
Docket No. 413. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
stop trains Nos. 107 and 108 at Franklinton and Wake Forest during 
summer months. Approved. Docket No. 460. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
discontinue Stallings, East Charlotte, Homestead and Hoskins as flag 
stops for trains Nos. 21 and 22; Russellville for trains Nos. 13 and 14; 
Mineral Spring for train No. 12. Also discontinuance of Green Pond 
as flag stop for trains Nos. 2 5 and 2 6, and Alexis for trains Nos. 21 and 
22. Approved except as to Alexis. Docket No. 527. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
make changes and additions in passenger train schedules between Hamlet- 
Monroe-Charlotte and Rutherfordton. Approved. Docket No. 3 57. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for change in 
schedules of trains Nos. 13 and 14 operating between Wilmington and 
Hamlet and between Hamlet and Charlotte. Approved. Docket No. 724. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
change schedule of through trains Nos. 107, 17 and 19, between Hamlet 
and Norlina; and also in schedules of trains Nos. 285 and 212 between 
Henderson and Durham. Approved. Docket No. 861. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Recievers) to the Commission. Application for authority to 
change schedule of trains Nos. 108 and 19, 20, 13, 14 and 18, between 
Norlina-Raleigh-Hamlet. Granted. Docket No. 83 5. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
handle L. C. L. freight in trucks operated between Norlina and Hamlet 
for express and parcel post. Approved. Docket No. 322. 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
substitute motor service cars for trains Nos. 13 and 14 between Ports- 
mouth and Norlina. Approved. Docket No. 547. 



Decisions and Adjustments of Complaints 215 

Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. 
Anderson, Receivers) to the Commission. Application for authority to 
establish rail-motor service (bus) between Richmond and Raleigh, discon- 
tinuing stopping of trains Nos. 3 and 4 at Norlina, Henderson, Franklin- 
ton and Wake Forest. Approved. Docket No. 595. 

Southern Railway Company to the Commission. Application for author- 
ity to remove spur track at Law, and remove station from tariffs. 
Approved. Docket No. 361. 

Southern Railway Company to the Commission. Application for author- 
ity to eliminate Shelton from tariffs and abandon siding at that point. 
Approved. Docket No. 3 61. 

Southern Railway System to the Commission. Application for author- 
ity to remove Audubon Siding from open and prepay station list and 
remove track. Granted. Docket No. 414. 

Southern Railway Company to the Commission. Application for author- 
ity to remove siding at Miltimore. Approved, Docket No. 431, 

Southern Railway Company to the Commission. Application for author- 
ity to remove side track at Luthers. Approved. Docket No. 4 8 6. 

Southern Railway Company to the Commission. Application for 
authority to remove side track at Nelson and discontinue handling of 
carload business to and from said point. Approved, Docket No. 582. 

Southern Railway Company to the Commission. Application for 
authority to remove sidings at Cooper, Epps Springs and Janney. 
Approved. Docket No. 594. 

Southern Railway Company to the Commission. Application for 
authority to retire combination depot at Auburn. Approved. Docket 
No. 302. 

Southern Railway Company to the Commission. Application for 
authority to retire combination depots at Bethania, Cornatzer and Loray. 
Approved. Docket No. 34 5. 

Southern Railway Company to the Commission. Application for 
authority to discontinue agency at Pelham. Approved. Docket No. 2 6 6. 

Southern Railway System to the Commission. Application for 
authority to discontinue agency at Wilson Mills, making same prepay 
station. Approved. Docket No. 59 3. 

Southern Railway Company to the Commission. Application for 
authority to discontinue passenger service on Chapel Hill Branch, 
Approved. Docket No. 763. 

Southern Railway Company to the Commission. Application for 
authority to make changes in service on Greensboro-Goldsboro Line, as 
follows: Discontinuance of Method, Bilboa and Glen Raven as flag stops 
for train No. 13 and make Efland a flag stop for passengers from Durham 
and East and to pick up for Greensboro and West; discontinuance of 
Elon College as flag stop except for passengers from Durham and East 
and pick up for Greensboro and West; discontinuance of West Durham as 



216 ^N". C. Utilities Commission 

flag stop for train No. 18, except for passengers from Burlington or West; 
also discontinuance of Method as flag stop for train No. 18. Approved, 
Docket No. 359. 

Southern Railway Company to the Commission. Application for 
authority to discontinue stopping passenger trains Nos. 45 and 46 at 
Lake and Yadkin. Approved. Docket No. 417. 

Southern Railway Company. Application of citizens of Cleveland for 
trains Nos. 21 and 22 to stop on flag at Cleveland. Granted. Docket No. 
389. 

Southern Railway Company. Application by L. H. Pollock of Asheville 
for extension of the Knoxville-Asheville Pullman to Salisbury. Dismissed. 
Docket No. 746. 

Southern Railway Company to the Commission. Application for 
authority to discontinue handling of passengers on mixed trains Nos. 
2 07-208 between Oxford and Henderson. Granted. Docket No. 865. 

Claims 

Corn, C. L., East Alliance to Charlotte. Application of Norfolk South- 
ern Railroad Company to refund $18.57 to R. E. Watson account of 
error in minimum weight. Approved. Docket No. 799. 

Corn, C. L., from Pantego to Charlotte, N. C, waiver of undercharge 
claim in amount of $3 6.00 account of C. F. Morris Company. Application 
of Norfolk Southern Railroad Company. Approved. Docket No. 50 6. 

Corn, C. L. Application of Norfolk Southern Railroad Company for 
authority to waive undercharge, Pike Road to Asheboro, N. C, account 
Southern Crown Milling Co. Approved. Docket No. 580. 

Cotton. Claim of P. H. Hanes Knitting Co. vs. S. E. Storage and 
Demurrage Bureau covering two cars from Raleigh to Winston-Salem. 
Dismissed. Docket No. 581. 

Cotton, application of Southern Railway Company for authority to 
award reparation on 13 5 bales of cotton for account of Staple Cotton 
Cooperative Association. Withdrawn. Docket No. 344. 

Cotton, waiver of undercharge on 8 bales from Greenville, N. C, to 
Durham, N. C, for account of Speight & Hagood. Application of Atlantic 
Coast Line Railroad Company. Approved. Docket No. 378, 

Cotton, waiver of undercharge on 19 bales from Robersonville to 
Erwin, N. C, on basis of rate established subsequent to date of movement. 
Application of Atlantic Coast Line Railroad Company. Approved. Docket 
No. 450. 

Cotton batting, claim of Charlotte Shippers and Manufacturers Asso- 
ciation for account of Barnhardt Manufacturing Co., Charlotte, over- 
charge. Approved. Docket 336. 

Demurrage charges on two empty cars at Bolton. Application of 
Atlantic Coast Line Railroad Company to waive collection account mis- 
understanding with shippers. Approved. Docket No. 64 5. 



Decisions and Adjustments of Complaints 217 

Fertilizer, C. L. Reparation on. Application of Atlantic Coast Line 
Railroad Company for account Acme Manufacturing Company. Approved. 
Docket No. 374. 

Fertilizer, C. L., South Rocky Mount, N. C. to Goldsboro, N. C. Claim 
of Southern Traffic Association account Planters, Cotton Oil and Fertil- 
izer Co., Goldsboro against Atlantic Coast Line Railroad Company. Dis- 
agreement between parties. No hearing desired. Docket No. 242. 

Kerosene, C. L., Wilmington to Hunter, N. C. Waiver of undercharge 
for account of Pure Oil Company based on truck competitive rate. Appli- 
cation of Atlantic Coast Line Railroad Company. Approved. Docket 
No. 699. 

Logs, C. L., overcharge claim of Piedmont Traffic Association, covering 
two cars from Bunting Siding to Greensboro. Correct. Docket No. 579. 

Marl, C. L., application of Atlantic Coast Line Railroad Company for 
authority to award reparation based on newly established rates from 
Simar, N. C. Approved. Docket No. 356. 

Marl, C. L. Reparation on. Application of Atlantic Coast Line Rail- 
road Company for account of North Carolina Emergency Relief Adminis- 
tration. Approved. Docket No. 370. 

Marl, L. C. L., from Rocky Point to Wenona, N. C. Application of 
Atlantic Coast Line Railroad Company to award reparation to Hugh 
McRae & Co. Approved. Docket No. 430. 

Marl, unground, from Simar to New Bern, N. C. Waiver of under- 
charge. Application of Atlantic Coast Line Railroad Company. Approved. 
Docket No. 425. 

Paper, wrapping. Claim of Piedmont Traffic Association, account Hali- 
fax Paper Company, alleging overcharge from Roanoke Rapids to Win- 
ston-Salem. Denied. Docket No. 397. 

Peanuts, farmers stock, C. L. Application of Norfolk Southern Rail- 
road Company to refund $84.00 on cars moving from Mackeys and Cres- 
well, N. C. to Goldsboro, N. C. account of truck competition. Approved. 
Docket No. 326. 

Peanuts, farmers stock, C. L. Application of Atlantic Coast Line Rail- 
road Company to refund $331.78 on movements from Tarboro, Kingsboro 
and Heartsease, N. C. to Selma, N. C. account truck competition. Approved. 
Docket No. 30 5. 

Peanuts, farmers stock, C. L. Application of Atlantic Coast Line Rail- 
road Company, refund $105.64 on cars from Darden and Jamesville to 
Goldsboro account truck competition. Approved. Docket No. 305. 

Peanuts, farmers stock, C. L. Application of Atlantic Coast Line Rail- 
road Company to refund charges in amount of $871.56 account truck 
competition. Approved. Docket No. 305. 

Sheets, cotton, Kannapolis, N. C. to Winston-Salem, N. C. Claim of 
North Carolina Cotton Manufacturers Association account Johnson and 
Johnson. Approved. Docket No. 412. 



218 ]^. C. Utilities Commission 

Sheets, cotton, Kannapolis to Tarboro, N. C. Claim to North Carolina Cot- 
ton Manufacturers Association account Johnson and Johnson. Denied. Docket 
No. 412. 

Soda, nitrate of. Waiver of undercharge on six cars from Wilmington 
to New Bern, in amount of $149,86. Application of Norfolk Southern 
Railroad Company. Approved. Docket No. 719. 

Stone, crushed, C. L. Reparation for account of State Highway and 
Public Works Commission, from Ashford, N. C. to Burnsville. Application 
of Clinchfield Railroad Company. Approved. Docket No. 765. 

Stoves, L. C. L. from New Bern, N. C. to Stokes, N. C. Application of 
Atlantic Coast Line Railroad Company to waive collection of undercharge. 
Approved. Docket No. 781. 

Switching, application of Winston-Salem Southbound Railway Company 
to waive collection of undercharge three cars cotton from Lumberton to 
Lexington, N. C. Granted. Docket No. 23 8. 

Tobacco, leaf, C. L., Williamston to Reidsville, N. C. Waiver of under- 
charges on 13 carloads. Application of Atlantic Coast Lin© Railroad 
Company. Approved. Docket No. 587. 

Trucks, roving. Claim of Piedmont Traffic Association for overcharge 
in amount of $1.66, from Greensboro to Tarboro, for account of Carolina 
Steel and Iron Company. Withdrawn. Docket No. 396. 

Sewerage Lines 

RE: APPLICATION FOR CERTIFICATE OF CONVENIENCE AND NE- 
CESSITY TO CONSTRUCT A SEWERAGE SYSTEM AND LINES AT 
THE TOWN OF RICHLANDS. 

Order 

Application having been made to this Commission for Certificate of Con- 
venience and Necessity to construct a sewerage line at Richlands, North Car- 
olina, which sewerage line is to be run as follows, to-wit: 

Beginning at North Wilmington Street, in the town of Richlands, and run- 
ning through the Miller farm, owned by W. B. Venters and Julia G. Venters, 
3,000 feet through to Squires Run, said property to be used for installing 
sewerage pipes. 

It appearing to this Commission that the construction of said sewerage 
system and said sewerage line is decidedly to the advantage of the Town of 
Richlands and that public convenience and necessity require the construc- 
tion of same and that it is necessary to begin and continue the construction 
of said, sewerage system immediately in order to prevent the withdrawal 
and cancellation of the Government loan for said sewerage system; 

It is now, therefore, ordered and adjudgf:d. That a Certificate of Conveni- 
ence and Necessity should be immediately granted, and it is hereby granted 
to the Town of Richlands and/or its oflScers or representatives, in charge of 
the construction of the sewerage system in the town of Richlands, to pro- 



Decisions and Adjustments of Complaints 219 

ceed at once with all that is necessary for the construction of said sewerage 
system, insofar as this Commission is authorized and empowered so to do. 

This 14th day of February, 1936. 

By order of the Commissioner: Stanley Winborne, 

(Seal) Utilities Commissioner. 

R. 0. Self, Chief Clerk. 

Docket No. 668. 

Telegraph Companies 

IN THE MATTER OF APPLICATIONS OF WESTERN UNION TELE- 
GRAPH COMPANY TO DISCONTINUE TELEGRAPH SERVICE AT SUN- 
BURY, N. C, AND ROPER, N. C. 

Order 

Comes now the Western Union Telegraph Company, seeking authority to 
discontinue telegraph service at Sunbury, N. C, and Roper, N. C, hearing 
on which was held before the undersigned commissioner in the office of the 
Commission at Raleigh, N. C, at 10 o'clock a. m., November 12, 1935, with 
the following appearances: 

J. C. Little, Attorney for Western Union Telegraph Co., Raleigh, N. C. 

B. G. Dopson, District Superintendent, Western Union Telegraph Co., 
Greensboro, N. C. 

C. T. Bolick, Manager, Western Union Telegraph Co., Raleigh, N. C. 
L. P. Kennedy, Superintendent, Norfolk-Southern Railroad Co., New 

Bern, N. C. 

S. E. Bryant, V. F., the Order of Railroad Telegraphers, Nashville, 
Tenn. 

W. D. Yates, of the Order of Railroad Telegraphers, Raleigh, N. C. 

Messrs. Bryant and Yates were present as observers only. 

Applications were made and filed by District Superintendent Dopson, and 
dated October 14, 1935 as to Sunbury, and October 22, 1935, as to Roper. Ap- 
plications show that Western Union business at these points is small and 
that the average monthly revenue at Roper and Sunbury is only $5.64 and 
$9.20, respectively. 

Superintendent L. P. Kennedy of the Norfolk-Southern Railroad Com- 
pany was duly sworn as witness and testified to the effect that these applica- 
tions are the outgrowth of similar former petitions by his company, filed in 
May, 1935, seeking the same authority herein sought by the Western Union 
Telegraph Company. That upon hearing by the Commission of the applica- 
tion of the Norfolk-Southern Railroad Company for permission to close the 
telegraph offices at Sunbury and Roper the Commission found that since 
the Norfolk-Southern Railroad Company is not empowered, under its char- 
ter, to engage in commercial telegraph service and that its only connection 
therewith is by virtue of a contract between that company and the Western 
Union Telegraph Company, and that the Norfolk-Southern Railroad Company 
was not the proper party to ask permission to discontinue telegraph service. 

The testimony shows gross tolls at Sunbury for the year ending June 30, 
1934 was $127.47, and at Roper for the same period of time, $238.95; that the 



220 ]^. C. Utilities Commission 

Western Union's net earnings were, at Sunbury $62.42 for the year, and that 
if they had to employ an operator his salary would be about $85.00 per month, 
or $1,020 per year. 

The Western Union Telegraph Company owns no facilities at either place, 
the wire, poles and, in fact, equipment all belonging to the railroad company. 

The Commissioner is of the opinion and so finds that it having been our 
policy to refuse authority to close telegraph stations unless it is shown be- 
yond a doubt that the receipts of the office are so small as to make it un- 
reasonable and unfair to require continuance of said offices, and from the 
facts presented in the instant cases, not only are the receipts far below what 
would be required to justify continuance of these offices, but there is nothing 
to indicate any improvement can be expected. 

Wherefore, it is ordered. That applications of the Western Union Tele- 
graph Company for authority to close its offices at Sunbury and Roper, North 
Carolina, be and the same are hereby approved. 

This 14th day of November, 1935. 

By order of the Commissioner: Stanley Winborne, 

Attest: Commissioner. 

R. O. Self, Chief Clerk 

Docket No. 381. 

Western Union Telegraph Company to the Commission. Rates for tourate 
telegrams and birthday greetings. Approved. Docket No. 560. 

Western Union Telegraph Company to the Commission. Rates for Christ- 
mas and New Year greetings. Approved. Docket No. 613. 

Western Union Telegraph Company to the Commission. Rates for Valen- 
tine greeting messages. Approved. Docket No. 637. 

Western Union Telegraph Company to the Commission. Rates for bon voy- 
ages messages. Approved. Docket No. 640. 

Western Union Telegraph Company to the Commission. Rates for Easter 
greeting messages and birthday greeting messages. Approved. Docket No. 
669. 

Western Union Telegraph Company to the Commission. Rates for bon 
voyage messages and commencement messages. Approved. Docket No. 675. 

Western Union Telegraph Company to the Commission. Rates for Mother's 
day greetings messages and Father's day greeting messages. Approved. 
Docket No. 686. 

Western Union Telegraph Company to the Commission. Rates for tourate 
telegrams. Approved. Docket No. 737. 

Western Union Telegraph Company to the Commission. Rates for Jewish 
New Year's day greeting messages. Approved. Docket No. 757. 

Western Union Telegraph Company to the Commission. Rates for Thanks- 
giving day greeting messages. Approved. Docket No. 802. 

Western Union Telegraph Company to the Commission. Rates for con- 
gratulations on wedding anniversaries, congratulations on occasions of birth 
and congratulations on occasions of weddings. Approved. Docket No. 814. 



Decisions and Adjustments of Complaints 221 

Western Union Telegraph Company to the Commission. Rates on "Pep" 
messages (athletic and debating contests), and rates for kiddiegrams. Ap- 
proved. Docket No. 823. 

Western Union Telegraph Company to the Commission. Rates for mes- 
sages limited to expression of congratulations on any special occasions. Also 
on messages limited to expressions of thanks, appreciation or compliments 
for hospitality, courtesies, etc. Approved. Docket No. 838. 

Western Union Telegraph Company to the Commission. Rates for gift 
orders. Approved. Docket No. 842. 

Western Union Telegraph Company to the Commission. Rates for Santa 
Claus messages. Approved. Docket No. 862. 

Western Union Telegraph Company to the Commission. Rates for intra- 
city night letters in quantity. Approved. Docket No. 879. 

Western Union Telegraph Company to the Commission. Rates on mes- 
sages requesting hotel or travel accommodations and replies thereto. Ap- 
proved. Docket No. 888. 

Telephone Companies 

ORDER U-11 
Hand Set Charges 

This Commission having limited the extra monthly charge for handsets to 
a period of 18 months in its order. Docket 88, in the case of the Southern 
Bell Telephone and Telegraph Company, this Commission is of the opinion 
that this restriction should apply to all telephone exchanges in the State, 
therefore, 

It is ordered, That all telephone companies operating under the jurisdic- 
tion of this Commission are hereby cited to appear in the office of the Com- 
mission on or before December 29th, at 10 o'clock a. m., to show cause if any, 
why the differential charge now made on hand sets should exceed 25 cents 
per month for a period of 18 months, and thereafter no extra charge; and 

Further, That any subscriber who has paid an extra charge for this type 
of instrument for 18 months or more shall cease to pay any differential over 
the standard rates prescribed by this Commission, effective January 1, 1935". 

Further, That in the event any utility to which this order applies is in 
accord with the order, and does not care to make appearance, it may file with 
the Commission its written declaration that it will conform to the provisions 
of the order and this declaration shall become a part of its schedule of 
rates now on file with the commission. 

By order of the Commission: 

This 14th day of December, 1934. Stanley Winborne, 

(Seal) R. 0. Self, Chief Clerk. Utilities Commissioner 

Raleigh, N. C. 



222 'N. C. Utilities Commission 

IN RE: TELEPHONE EXCHANGE AT ALBEMARLE, N. C. 

Order 

Since the acquisition of the Albemarle Telephone Company by the Con- 
cord Telephone Company, it has come to the attention of the Utilities Com- 
missioner that the collection of the monthly rental rates on the Albermarle 
Exchange are not being collected in advance for the current month, but the 
practice is such that there are all the time from one to two months rental 
and toll charges in arrears. The practice operates against the economic 
operation of the exchange and promotes the increase of its losses. The ac- 
cumulated of unpaid bills makes collection diflBcult and often results in non- 
payment. It is possible for such practice, especially in small exchanges, 
to eventually produce a condition which will require an increase in rates; 
therefore, it is 

Ordered, That the Albemarle Telephone Company and/or Concord Tele- 
phone Company be and they are hereby directed to collect all telephone 
monthly rental rates during the first ten days of the month on which said 
rent is due. 

TMs 9th day of August, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 499. 



IN RE: PETITION OF THE CAROLINA TELEPHONE AND TELE- 
GRAPH COMPANY FOR PERMISSION TO INSTALL AUTOMATIC 
EXCHANGE AT AYDEN. 

Order • 

Now comes the Carolina Telephone and Telegraph Company, through 
its petition filed with this Commission on the 10th day of April, 1935, 
and asks permission to rebuild its lines and install an automatic or dial 
system in the town of Ayden, N. C, and that rates set forth in said peti- 
tion for its various classes of service be approved. 

The Commission being satisfied that the proposed change in the type 
of the exchange will result in the rendering of better service to the sub- 
scribers in the town of Ayden and that the town authorities and civic or- 
ganizations are desirous of having change made and that the installation 
of an automatic exchange will necessitate a considerable outlay of money 
on the part of the Telephone Company, justifying an increase in rates over 
the present magneto exchange, which is recognized and approved by the 
town authorities as long as said rates are in line with the rates charged 
in other automatic exchanges comparable in size to that of Ayden; 

It is now, therefore, ordered, That the said Carolina Telephone and Tele- 
graph Company be and the same is hereby permitted and authorized to 
rebuild its telephone system and install an automatic or dial system in 
the town of Ayden, and when completed to charge for its services the fol- 



Decisions and Adjustments of Complaints 223 

lowing rates, which are the rates charged in other comparable exchanges 
served by the said Carolina Telephone and Telegraph Company within 
this State: 

Business, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

It is further ordered, That the above rates are contingent upon and sub- 
ject to review upon complaint or upon reviewal by the Commission of the 
entire rate structure of the company. : 
This 15th day of April, 1935. 

Stanley Winborne, 
Docket No. 338. Utilities Commissioner. 

IN THE MATTER OF THE PETITION OF THE CAROLINA TELEPHONE 
AND TELEGRAPH COMPANY FOR A CHANGE IN EXCHANGE 
SERVICE RATES AT BEAUFORT AND MOREHEAD CITY, N. C. 

Order 

This matter comes before the Commission upon the petition of the 
Carolina Telephone and Telegraph Company asking for an approval of 
telephone rental rates in the towns of Morehead and Beaufort. 

Petition was originally filed in this matter on December 20, 193 5, in 
which was set out proposed increases in telephone rental rates both for 
the Town of Morehead and the Town of Beaufort. In consideration of 
the installation of automatic exchanges in both of said towns with free 
service between said towns, the toll charges now being in effect between 
said towns to be eliminated upon the going into effect of said proposed in- 
creases in rental rates, these proposed rates were approved by the Boards 
of Aldermen of the said two towns, respectively 

The petition above referred to, which was filed on December 20, 193 5, 
but which was dated August 13, 1935, in some way was misplaced where- 
upon the telephone company filed a new petition which was received by 
this Commission on April 23, 193 6, in which petition the propoosed in- 
crease in rates was therein set out, the same being the rates hereinafter 
appearing in this order, and together with said petition was filed a resolu- 
tion of the Board of Commissioners of the Town of Beaufort, signed by 
Mr. Bayard Taylor, Mayor, dated April 6, 1936, approving said in- 
creases, and also a certified copy of a resolution passed by the Board of 
Commissioners of the Town of Morehead City, signed by Mr. H. S. Gibbs, 
Mayor, approving the same increases and the same rates for the Town of 
Morehead City. 

Pending the consideration of these petitions, there was a readjust- 
ment of certain rates of Carolina Telephone and Telegraph Company at 
various exchanges served by it, and, in order to obviate any possible 
misunderstanding, this Commission before passing upon the petitions in 
question required the Boards of Commissioners in the towns of Morehead 



224 , ^. C. Utilities Commission 

City and Beaufort, respectively, to reaffirm their approval of the proposed 
increases in rental charges. That on the 8th day of May, 19 3 6, the 
Boards of Commissioners of both towns, by resolutions now on file with 
this Commission, again approved the said increases in rental charges, to 
b© put into effect June 1, 193 6, as follows: 

Business, Special Line $4.00 per month 

Business, Party Line 3.50 per month 

Residence, Special Line 2.35 per month 

Residence, Party Line 1.75 per month 

Upon consideration of the entire matter, the large expenditure required 
to install the automatic exchanges, the cost of submarine cable over and 
across Bogue Sound, the elimination of toll charges between said towns, 
and the loss of toll revenue which will probably not be replaced by 
the increased rates, this Commission is of the opinion, and so finds, that the 
rental rates above set forth and approved by said Boards of Commis- 
sioners are fair and equitable and comparable with the rates recently 
agreed upon in exchanges operated under similar conditions; 

Wherefore, it is ordered, That on and after June 1, 1936, the rental rates 
for both the Town of Morehead City and the Town of Beaufort shall be 
as follows: 

Business, Special Line $4.00 per month 

Business, Party Line 3.50 per month 

Residence, Special Line 2.35 per month 

Residence, Party Line 1.75 per month 

Provided all toll charges between said towns are eliminated and the 
subscribers of each town shall have free service through the exchange of 
the other town to all the subscribers of the other town; 

Provided, further, that this order affects only rental rates and elimina- 
tion of toll charges as above set out, and that in all other respects, the 
agreement between this Commission and the said telephone company, as 
to extension charges, hand-sets, and any other changes in regulation and 
charges for service, which are set out in the letter of the telephone com- 
pany, dated April 25, 1935, at the time its rates generally were reduced, 
shall apply to the exchanges here in question as much so as to the other 
exchanges involved throughout the system. 

This May 9, 1936. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS BENSON EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Benson Exchange 
by rebuilding its outside plant and the installation of automatic dial system. 



Decisions and Adjustments of Complaints 225 

The petitioner has had this matter up with tlie officials of the Town of 
Benson and, even coupled with proposal to slightly increase telephone rates 
to make up for the increased investment, it appears that the officials of the 
town do not object to such actions, but rather welcome the improvement of 
the service. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines and where the tele- 
phone company is voluntarily offering to improve, finance, and construct 
additional telephone service, it is the opinion of this Commission that such 
an attitude should be encouraged, therefore, under the circumstances this 
Commission will permit the rates applied for to go into effect, after the 
rebuilding of the outside plant and the installation of the automatic dial 
system, without prejudice. 

Therefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective 
on the first of the month next thereafter: 

Business, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 5, 1935. 

By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS CLINTON EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Clinton Exchange by 
rebuilding its outside plant and the installation of automate dial system. 

The petitioner has had this matter up with the officials of the Town of 
Clinton, and, even coupled with proposal to slightly increase telephone rates 
to make up for the increased investment, it appears that the Board of Alder- 
men of Clinton has unanimously approved the proposal. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines, and, where the tele- 
phone company is voluntarily offering to improve, finance, and construct 
additional telephone service, it is the opinion of this Commission that such 
an attitude should be encouraged, therefore, under the circumstances this 
Com^mission will permit the rates applied for to go into effect, after the 



226 I^. C. Utilities Commission 

rebuilding of the outside plant and the installation of the automatic dial 
system, without prejudice. 

Therefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective on 
the first of the month next thereafter: 

Busines, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 5, 1935. 

By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS FREMONT EXCHANGE. 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Fremont Exchange by 
rebuilding its outside plant and the installation of automatic dial system. 

The petitioner has had this matter up with the officials of the Town of 
Fremont, and, even coupled with proposal to slightly increase telephone rates 
to make up for the increased investment, it appears that the Board of Alder- 
men of Fremont has approved the proposal if the proposed rates are found 
by this Commission to be reasonable. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines, and, where the 
telephone company is voluntarily offering to improve, finance, and construct 
additional telephone service, it is the opinion of this Commission that such 
an attitude should be encouraged, therefore, under the circumstances this 
Commission will permit the rates applied for to go into effect, after the 
rebuilding of the outside plant and the installation of the automatic dial 
system, without prejudice. 

Therefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective 
on the first of the month next thereafter: 

Business, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 7, 1935. 

By order of the Commission: Stanley Winborne, 

R, O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



Decisions and Adjustments of Complaints 227 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS KENANSVILLE EXCHANGE 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Kenansville Exchange 
by rebuilding its outside plant and the installation of automatic dial system. 

Kenansville has no exchange at present and this will give it a service its 
people never have enjoyed. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines and where the tele- 
phone company is voluntarily offering to improve, finance, and construct 
additional telephone service, it is the opinion of this Commission that such 
an attitude should be encouraged, therefore, under the circumstances this 
Commission will permit the rates applied for to go into effect, after the 
rebuilding of the outside plant and the installation of the automatic dial 
system, without prejudice. 

Therefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective 
on the first of the month next thereafter: 

Business, Party Line $3.00 per month 

Residence, Party Line 1.50 per month 

This October 7, 1935. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS LOUISBURG EXCHANGE 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Louisburg Exchange 
by rebuilding its outside plant and the installation of automatic dial system. 

Louisburg now has a manual common battery type exchange and this 
proposal will enlarge the central office and install toll switchboard and 
replace the exchange and all instruments in the town to care for local 
service. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines and where the tele- 
phone company is voluntarily offering to improve, finance, and construct 
additional telephone service, it is the opinion of this Commission that such 
an attitude should be encouraged, therefore, under the circumstances this 



228 



]^. C. Utilities Commission 



Commission will permit the rates applied for to go into effect, after the 
rebuilding of the outside plant and the installation of the automatic dial 
system, without prejudice. 

Thekefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective 
on the first of the month next thereafter: 

Individual Two-Party 

Line Line 

Business $3.50 $3.00 

Residence 2.25 1.75 



This October 5, 1935. 

By order of the Commission: 

R. O. Self, Chief Clerk. 
Docket No. 543. 



Stanley Winborne, 

Utilities Commissioner. 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTO- 
MATIC DIAL SYSTEM ON ITS MACON EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing 
application to improve the service and plant conditions on its Macon 
Exchange by rebuilding its outside plant and the installation of automatic 
dial system. 

The petitioner has only two phones within the Town of Macon at 
present, but several rural phones outside, and the proposal will enable 
the petitioner to maintain service at this point when there is a possibility 
that it may not be able to otherwise do so. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government 
is backing and fostering the construction of electric lines, and, where the 
telephone company is voluntarily offering to improve, finance, and con- 
struct additional telephone service, it is the opinion of this Commission 
that such an attitude should be encouraged, therefore, under the circum- 
stances this Commission will permit the rates applied for to go into 
effect, after the rebuilding of the outside plant and the installation of 
the automatic dial system, without prejudice. 

Therefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt 
of such notice by this Commission, the following rates shall become 
effective on the first of the month next thereafter: 

Business, Party Line $3.00 per month 

Residence, Party Line 1.50 per month 

This October 7, 1935. 
By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. ' Utilities Commissioner. 

Docket No. 543. 



Decisions and Adjustments of Complaints 229 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS PROPERTIES AT RICHLANDS, SWANS- 
BORO AND JACKSONVILLE AND FOR THE ESTABLISHMENT OF 
TOLL RATES BETWEEN CERTAIN EXCHANGES AND FOR ADJUST- 
MENT OF RENTAL RATES 

Order 

The petition for Swansboro was filed in September, 1935, but at the 
request of the company was held pending the filing of similar petitions 
for Richlands and Jacksonville because of the relationship between the 
exchanges. 

The petition was renewed September 1, 1936 as to Swansboro and 
petitions were filed for Jacksonville and Richlands. 

Hearing was set for 11 o'clock a. m., Monday, September 14, 1936 and 
copies of the petition with notices of the date for hearing were served 
upon the mayor of each town and also upon the clerk of each town's 
Board of Aldermen. 

Reply was made by the Clerk of the Town Board of Richlands advising 
that they did not want any change in th© present status; that the Rich- 
lands Town Board had voted as a unit against such change. No reply 
was received from either of the officials of the Towns of Jacksonville or 
Swansboro. 

Hearing was held on the day set, but no representative for either town 
appeared at the hearing. The petitioner was represented by attorney 
and by its executive vice-president and local officials from the territory 
affected by the application. 

The petitioner proposes: (1) To rebuild its rural lines making such 
extensions as demand for this type of service requires and is justified; 

(2) To replace the decayed toll line poles and rusty iron wire long 
distance circuits with creosoted pine poles and copper wire between 
Jacksonville and Swansboro and between Jacksonville and Richlands; 

(3) To replace the present magneto type of switchboard with automatic 
or dial central office equipment. 

It developed at the hearing that not all the officials of the three towns 
were subscribers; that Richlands is about 13 miles from Jacksonville 
exchange and that no charge is now made on calls from there to Jackson- 
ville; that Swansboro is about 22 miles from Jacksonville and no charge 
is made on the calls from there to Jacksonville. The present service is 
limited to day service only and petitioner proposes, upon completion of 
the rebuilding of the plant and toll lines, to establish twenty-four-hour 
service and the revenue from rentals at the three towns is not sufficient 
to warrant the necessary rebuilding of the exchange and toll lines without 
adding a toll on the service between the towns. The present free service 
over the toll lines places a burden upon the rental used and permits the use 
of the toll lines free by those who are not subscribers. 

This property was purchased by the petitioner in 1934 and was in 
very bad condition at the time of the acquisition and the petitioner is 
not satisfied to continue to endeavor to give service with the facilities 
at hand because of the expense of maintenance and the liabilities involved. 



230 N". C. Utilities Commission 

A study of the June, 1936 operation showed a revenue from rentals 
at Jacksonville of $312.95, local expense, $280.64; Richlands revenue, 
$58.75, local expense, $78.80; Swansboro revenue, $27.75 and local 
expense $44.80. This expense is exclusive of taxes, depreciation and 
other overhead charges. 

The petition as presented has been approved by the Kiwanis Club of 
the Town of Jacksonville and by a great many other leading represen- 
tative citizens of the section of Jacksonville and vicinity. 

It is evident from these figures that the telephone company cannot 
afford to rebuild these properties on this earning and certainly cannot 
construct toll lines for free use by the subscribers of an exchange that 
runs a deficit on rental revenues and even if the rebuilding of the property, 
is not necessary, it appears that some relief in monthly rental charges 
is necessary. 

Therefore, it is ordered, That the petition be granted; that when the 
property has been rebuilt as outlined in the petition, the petitioner shall 
establish a twenty-four-hour service on the exchanges in question and 
that the standard toll rate shall be made to apply between the said 
exchanges and that the following monthly rental rates are hereby author- 
ized to be charged on the said exchanges: 

Jacksonville, N. C. 

Business, Special Line $3.75 per month 

Business, Two Party 2.75 per month 

Residence, Special Line 2.00 per month 

Residence, Two Party 1.50 per month 

RiCHXANDS, N. C. 

Business, Party Line $3.00 per month 

Residence, Party Line 1.50 per month 

Swansboro, N. C. 

Business, Party Line $3.00 per month 

Residence, Party Line 1.50 per month 

This September 14, 1936. 
By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTO- 
MATIC DIAL SYSTEM ON ITS ROSE HILL EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing 
application to improve the service and plant conditions on its Rose Hill 
Exchange by rebuilding its outside plant and the installation of automatic 
dial system. 

Rose Hill is a small exchange and the telephone service has been 
unsatisfactory for a long while. This will give it a local exchange and 
has been petitioned for by the citizens of that section. 



Decisions and Adjustments of Complaints 231 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government 
is backing and fostering the construction of electric lines, and, where the 
telephone company is voluntarily offering to improve, finance, and con- 
struct additional telephone service, it is the opinion of this Commission 
that such an attitude should be encouraged, therefore, under the circum- 
stances this Commission will permit the rates applied for to go into 
effect, after the rebuilding of the outside plant and the installation of 
the automatic dial system, without prejudice. 

Thekefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt 
of such notice by this Commission, the following rates shall become 
effective on the first of the month next thereafter: 

Business, Party Line $3.00 per month 

Residence, Party Line 1.50 per month 

This October 5, 1935. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTO- 
MATIC DIAL SYSTEM ON ITS SCOTLAND NECK EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing 
application to improve the service and plant conditions on its Scotland 
Neck Exchange by rebuilding its outside plant and the installation of 
automatic dial system. 

The petitioner has had this matter up with the officials of the Town 
of Scotland Neck, and, even coupled with proposal to slightly increase 
telephone rates to make up for the increased investment, it appears that 
the Board of Aldermen of Scotland Neck has approved the proposal if the 
proposed rates are found by this Commission to be reasonable. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government 
is backing and fostering the construction of electric lines, and, where the 
telephone company is voluntarily offering to improve, finance, and con- 
struct additional telephone service, it is the opinion of this Commission 
that such an attitude should be encouraged, therefore, under the circum- 
stances this Commission will permit the rates applied for to go into 
effect, after the rebuilding of the outside plant and the installation of 
the automatic dial system, without prejudice. 

Therefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 



232 



^. C. Utilities Commission 



property has been reconstructed and is ready for use, and, upon receipt 
of such notice by this Commission, the following rates shall become 
effective on the first of the month next thereafter: 

Business, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 7, 193 5. 
By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTO- 
MATIC DIAL SYSTEM ON ITS SPRING HOPE EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing 
application to improve the service and plant conditions on its Spring 
Plope Exchange by rebuilding its outside plant and the installation of 
automatic dial system. 

The petitioner has had this matter up with the officials of the Towh 
of Spring Hope, and, even coupled with proposal to slightly increase 
telephone rates to make up for the increased investment, it appears that 
the Board of Aldermen of Spring Hope has unanimously approved the 
proposal. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government 
is backing and fostering the construction of electric lines, and, where the 
telephone company is voluntarily offering to improve, finance, and con- 
struct additional telephone service, it is the opinion of this Commission 
that such an attitude should be encouraged, therefore, under the circum- 
stances this Commission will permit the rates applied for to go into 
effect, after the rebuilding of the outside plant and the installation of 
the automatic dial system, without prejudice. 

Therefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt 
of such notice by this Commission, the following rates shall become 
effective on the first of the month next thereafter: 

Business, Special Line $3.50 per month 

Business, Party Line .-. 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 7, 1935. 
By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



Decisions and Adjustments of Complaints 



233 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTO- 
MATIC DIAL SYSTEM ON ITS STANTONSBURG EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing 
application to improve the service and plant conditions on its Stantons- 
burg Exchange by rebuilding its outside plant and the installation of 
automatic dial system. 

The petitioner has had this matter up with the officials of the Town of 
Stantonsburg, and, even coupled with proposal to slightly increase tele- 
phone rates to make up for the increased investment, it appears that the 
Board of Aldermen of Stantonsburg has approved the proposal if the 
proposed rates are found by this Commission to be reasonable. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines, and, where the 
telephone company is voluntarily offering to improve, finance, and con- 
struct additional telephone service, it is the opinion of this Commission 
that such an attitude should be encouraged, therefore, under the cir- 
cumstances this Commission will permit the rates applied for to go into 
effect, after the rebuilding of the outside plant and the installation of the 
automatic dial system, without prejudice. 

Therefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt 
of such notice by this Commission, the following rates shall become 
effective on the first of the month next thereafter: 

Business, Special Line - $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 7, 1935. 
By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY FOR CERTIFICATE OF CONVENIENCE AND NECESSITY — 
CONSTRUCTION EXCHANGE AT VANCEBORO 



Order 

Now comes the Carolina Telephone and Telegraph Company, with 
principal offices in the Town of Tarboro, North Carolina, and certificates 
that it proposes, subject to the approval of this Commission, to purchase 
the plant and properties of the Vanceboro Telephone Company which owns 
and operates telephone exchange at the Town of Vanceboro, Craven 
County, and certain rural lines leading out from said exchange, and the 



234 ]Sr. C. Utilities Commission 

petitioner further proposes to dismantle all or part of said property and 
rural lines and install new apparatus and equipment and construct new 
lines for the improvement of telephone service in the said town and 
community, and the said petitioner further certifies that public con- 
venience and necessity requires such acquisition, construction and opera- 
tion. 

This Commission has made inquiry and investigated the subject of 
this petition and finds that the facts set forth by the petitioner are true, 
therefore, the Commission finds that the granting of the said petition 
is necessary and will greatly enhance the convenience of the telephone 
service in the community referred to; 

Therefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to take such action as is necessary to 
carry out the acquisition, dismantling, assembling new apparatus and 
equipment and construction as is contained in its petition in this case. 

This October 3, 1935. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 550. 

IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTO- 
MATIC DIAL SYSTEM ON ITS VANCEBORO EXCHANGE 

Order 

Now comes the Carolina Telephone and Telegraph Company filing 
application to improve the service and plant conditions on' its Vanceboro 
Exchange by rebuilding its outside plant and the installation of automatic 
dial system. 

Vanceboro is a small exchange and the telephone service has been 
unsatisfactory for a long while. This will give it a local exchange and 
has been petitioned for by the citizens of that section. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government 
is backing and fostering the construction of electric lines, and, where the 
telephone company is voluntarily offering to improve, finance, and con- 
struct additional telephone service, it is the opinion of this Commission 
that such an attitude should be encouraged, therefore, under the circum- 
stances this Commission will permit the rates applied for to go into effect, 
after the rebuilding of the outside plant and the installation of the auto- 
matic dial system, without prejudice. 

Therefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt 



Decisions and Adjustments of Complaints 235 

of such notice by this Commission, the following rates shall become 
effective on the first of the month next thereafter: 

Business, Party Line $3.00 per month 

Residence, Party Line 1.50 per month 

This October 5, 1935. 
By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS WAKE FOREST EXCHANGE. 

Order 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Wake Forest Ex- 
change by rebuilding its outside plant and the installation of automatic dial 
system. 

The petitioner has had this matter up with the officials of the Town of 
Wake Forest, and, even coupled with proposal to slightly increase telephone 
rates to make up for the increased investment, it appears that the Board of 
Aldermen of Wake Forest has unanimously approved the proposal. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines, and, where the tele- 
phone company is voluntarily offering to improve, finance, and construct ad- 
ditional telephone service, it is the opinion of this Commission that such an 
attitude should be encouraged, therefore, under the circumstances this Com- 
mission will permit the rates applied for to go into effect, after the rebuild- 
ing of the outside plant and the installation of the automatic dial system, 
without prejudice. 

Therefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective on 
the first of the month next thereafter: 

Business, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 5, 1935. 

By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



236 



I^. C. Utilities Commission 



IN RE: PETITION OF THE CAROLINA TELEPHONE AND TELEGRAPH 
COMPANY TO INSTALL AUTOMATIC DIAL SYSTEM ON ITS WAL- 
LACE EXCHANGE. 

Order 

Now comes the Carolina Telephone and Telegraph Company filing appli- 
cation to improve the service and plant conditions on its Wallace Exchange 
by rebuilding its outside plant and the installation of automatic dial system, 
and to increase its rates. 

The Mayor and the Board of Aldermen of the Town of Wallace passed a 
resolution approving the rates asked for, upon the condition that the im- 
provements in the service conditions be made. Wallace is an important 
agricultural center for a great trucking section, and a good portion of its 
agricultural products are sold by telephone communication; therefore, it 
may be that telephone service is more important to this section than any 
other public utility service. 

Therefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective on 
the first of the month next thereafter: 

Business, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This January 23, 1936. 

By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 474. 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS WARRENTON EXCHANGE. 



Order 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Warrenton exchange 
by rebuilding its outside plant and the installation of automatic dial system. 

Warrenton now has a manual common battery type exchange and this pro- 
posal will enlarge the central office and install toll switchboard and replace 
the exchange and all instruments in the town to care for local service. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines, and, where the tele- 
phone company is voluntarily offering to improve, finance, and construct ad- 
ditional telephone service, it is the opinion of this Commission that such an 
attitude should be encouraged, therefore, under the circumstances this Com- 
mission will permit the rates applied for to go into effect, after the rebuild- 



Decisions and Adjustments of Complaints 



237 



ing of the outside plant and the installation of the automatic dial system, 
without prejudice. 

Theeefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective on 
the first of the month next thereafter: 

Individual Line Two-Party Line 

Business $3.50 $3.00 

Residence 2.25 1.75 



This October 7, 1935. 

By order of the Commissioner: 

R. 0. Self, Chief Clerk. 
Docket No. 543. 



Stanley Winborne, 
Utilities Commissioner. 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS WARSAW EXCHANGE. 

Order 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Warsaw Exchange 
by rebuilding its outside plant and the installation of automatic dial system. 

The petitioner has had this matter up with the officials of the Town of 
Warsaw, and, even coupled with proposal to slightly increase telephone rates 
to make up for the increased investment, it appears that the Board of Alder- 
men of Warsaw has unanimously approved the proposal. 

The people in small towns and in rural sections need telephone service 
probably as much as they need electricity, and the Federal Government is 
backing and fostering the construction of electric lines, and, where the tele- 
phone company is voluntarily offering to improve, finance, and construct ad- 
ditional telephone service, it is the opinion of this Commission that such an 
attitude should be encouraged, therefore, under the circumstances this Com- 
mission will permit the rates applied for to go into effect, after the rebuild- 
ing of the outside plant and the installation of the automatic dial system, 
without prejudice. 

Therefore, it is ordered, That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective on 
the first of the month next thereafter : 

Business, Special Line $3.50 per month 

Business, Party Line 3.00 per month 

Residence, Special Line 2.25 per month 

Residence, Party Line 1.75 per month 

This October 7, 1935. 

By order of the Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 



238 



ISl. C. Utilities Commission 



IN RE: PETITION CAROLINA TELEPHONE AND TELEGRAPH COM- 
PANY TO REBUILD ITS OUTSIDE PLANT AND INSTALL AUTOMATIC 
DIAL SYSTEM ON ITS WILSON EXCHANGE. 

Order 

Now comes the Carolina Telephone and Telegraph Company filing applica- 
tion to improve the service and plant conditions on its Wilson Exchange by- 
rebuilding its outside plant and the installation of automatic dial system. 

The petitioner has had this matter up with the officials of the Town of 
Wilson, and it appears that the Board of Aldermen of Wilson has unani- 
mously approved the proposal. 

The Federal Goverjiment is backing and fostering the construction of tele- 
phone and electric service, and, where a telephone company is voluntarily 
offering to improve, finance, and construct additional telephone service, it 
is the opinion of this Commission that such an attitude should be encouraged, 
therefore, under the circumstances this Commission will permit the rates 
applied for to go into effect, after the rebuilding of the outside plant and 
the installation of the automatic dial system, without prejudice. 

Therefore, it is ordered. That the petition be granted and that the peti- 
tioner be and is hereby authorized to notify this Commission when such 
property has been reconstructed and is ready for use, and, upon receipt of 
such notice by this Commission, the following rates shall become effective on 
the first of the month next thereafter: 

Business, Special Line $4.50 per month 

' Business, Two-Party 3.50 per month 

Residence, Special Line 2.65 per month 

Residence, Two-Party 2.20 per month 

Residence, Four-Party 2.00 per month 

This October 5, 1935. 

By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 543. 

IN RE: APPLICATION OF CAROLINA TELEPHONE AND TELEGRAPH 
COMPANY FOR PERMISSION FIRST: TO ISSUE FROM ITS SURPLUS 
$600,000 OF CAPITAL STOCK TO ITS PRESENT STOCKHOLDERS; 
SECOND: TO ISSUE AND SELL $400,000 OF NEW CAPITAL STOCK. 



Order 

This matter came before the Commission on application of the Carolina 
Telephone and Telegraph Company asking: 

First: For the approval by this Commission of the issuing and dis- 
tribution to its present stockholders of stock in the company to the 
amount of $600,000, the said stock to be charged against the surplus, 
and the present surplus to be debited to the amount of said $600,000 
stock issued. 

Second: For approval by this Commission of the further increase of 
the capital stock of the Carolina Telephone and Telegraph Company in 
the amount of $400,000, in order that additional funds may be raised to 
defray the cost of improvements to its present plant, the cost of exten- 
sion of its service into new territory and the acquisition of new prop- 
erties. 



Decisions and Adjustments of Complaints 239 

The matter of issuing to its present stockholders $600,000 of capital stock 
from its surplus has been presented to this Commission several times and 
was considered by this Commission in 1935 during the negotiations between 
this Commission and the said company in reference to a reduction in its 
rates and charges. At that time no definite conclusions were reached, either 
as to the reduction in rates and charges or as to the issuing of said stock 
from surplus but, since then, an agreement has been reached whereby the 
rates of the Company have been reduced. 

In support of its petition asking that it be allowed to issue to its present 
subscribers $600,000 in capital stock from its surplus, the Company presents 
the following reasons: 

That it has been engaged in the telephone business around forty years; 
that for many years it paid no dividends and reinvested all of its profits in 
enlarging and bettering its service; that in this method of expansion the 
value of its properties gradually and steadily exceeded from year to year the 
amount of its capital stock and that when it did begin paying dividends the 
dividends were very reasonable, considering the value of the actual prop- 
erties used and useful in providing the service; that at all times the com- 
pany has been most economically managed and small salaries paid; that it 
has used good business judgment in acquiring properties in periods of de- 
pression rather than during times of inflated values; resulting in the pur- 
chase of many exchanges in distress and the extension of its lines generally 
at low cost; that it has exercised wisdom in the construction of toll lines 
which are large revenue producers and that at all times have its rates been 
as low and in most cases lower than other comparable companies doing 
business in this and other states. 

The said company further contends that from its inception to the present 
it has accumulated a surplus of $815,382.25, and that from 1920 it has ac- 
tually reinvested in plant extensions and improvements $678,564 in cash, 
which could have during that period been paid to its stockholders in divi- 
dends. 

The contention is further made that this surplus belongs to the stock- 
holders of the company and that it was accumulated as a result of prudent, 
economical and far-sighted management and not by excessive rates and 
charges; that the stockholders have served the public by reinvesting this 
money in improving the facilities and extending the service instead of pay- 
ing it out in dividends, and that the Company should be allowed to deliver 
to its stockholders capital stock in the amount of $600,000 in lieu of the 
money which they could have received in cash. 

It is further argued that although the accumulated profits did not result 
from excessive rates and charges; that even if same had been the case and 
had this company made during the period of prosperity more than it should 
have made, that the accumulations have been accomplished, regardless in 
what way, and belong to the stockholders, cannot be legally taken from them 
and that they are entitled to have stock issued to them for the money which 
they have put back into the utility. 

It is further contended that the recent appraisal made of the properties 
of the company revealed a valuation, including all things allowed by the 
courts, of some $6,000,000 and that under a most conservative estimate, ex- 



240 ]Sr. C. Utilities Commission 

eluding such items as going concern value and other intangibles, the actual 
value of the physical properties alone exceeded $4,300,000, and this actual 
depreciated, "bare bones" value which is nearly double the amount of the 
present capital stock has resulted from the wise management of the com- 
pany, as aforesaid. 

The petitioner further contends that by the conversion of the surplus into 
capital, as aforesaid, the subscribers of the company will be in no way af- 
fected, as rates are fixed not upon the amount of capital stock, but upon 
the reasonable values of the properties used and useful in providing the serv- 
ice; and that increasing the number of shares of stock does not affect the 
rates, but only diminishes the value of each share outstanding and lessens 
the dividend per share. 

The Commission has very carefully considered the arguments and con- 
tentions made by the petitioner and has examined the records and reports 
on file with the office as far back as available and finds as a fact that from 
1920 up to the present the company has actually had available in cash the 
sum of $678,564, which it could have distributed to its stockholders but which 
it retained in its surplus account and expended from time to time in im- 
provements, extensions of its old properties and in the acquisitions of new 
properties. 

The records further disclose that most of this surplus accumulated in the 
prosperous period from 1920 to 1929 and that for some of the years since 
then there were no profits and in one or two instances the company has 
drawn upon its surplus to pay its annual dividends. The records further 
support the contention that the total accumulated surplus during the entire 
life of the company amount to $815,382.25, nearly all of which has been in- 
vested in the plant. The best evidence which the Commission has of the 
actual depreciated value of the bare physical properties is $4,376,172.13, as 
of January, 1934, and it is probable that any valuation for rate-making pur- 
poses would include other items which the courts recognize and allow, and 
would exceed said amount. 

The Commission is of the opinion that the rates charged by the petitioner 
in years past were too high and that the surplus which accumulated from 
year to year so indicates but, at the same time, it recognizes that the rates 
were lower than other comparable utilities and that the surpluses did not 
entirely result from rates but, as pointed out by the petitioner, from low 
salaries, economical management and good business foresight. 

The Commission further finds that a large part of the income of the peti- 
tioner was derived not from rental charges but from toll messages, both 
intra-state and interstate, and that its past and present system of toll lines 
connecting all of its exchanges, gives to it a decided advantage over other 
companies which receive only a commission on the toll messages passing 
through their exchanges. 

The Commission has considered the argument that the company should 
have paid out in cash each year its excess earnings and not have allowed 
its surplus to accumulate to the extent shown, and that when it became neces- 
sary to invest new capital in the utility that additional stock should have 
been issued and sold as needed. This method may be followed in the future 
but has not been customary in the past, and in the end there is very little, 
if any, difference between paying out the surplus and selling new capital 



Decisions and Adjustments of Complaints 241 

and in retaining and accumulating tlie surplus, investing it in the plant and 
later issuing stock for the accumulations so invested. The real remedy is 
in preventing the accumulation of excess surplus by reducing rates before 
the surplus accumulates. However, this Commission believes that a utility 
must not be penalized or punished for economical management and good 
business foresight and that the stockholders are entitled, along with the 
public, to share some of the benefits result from prudent management, other- 
wise the incentive to eliminate waste will be removed. 

While the Commission finds that the stockholders have actually reinvested 
in this utility from 1920 up to the present $678,564, it is of the opinion that 
$600,000 is too large an amount for which stock should be issued to stock- 
holders. While it is true, as before mentioned, that under the law the com- 
pany could have paid out each year its excess earnings, yet, as a matter of 
fact, no utility which intended to continue in business would have been so 
unwise, and furthermore the subscribers of the company have a moral right 
to expect that from the rates and charges paid by them to the utility a suf- 
ficient amount will be retained by the utility as a surplus available at all 
times to cover any unexpected requirement necessary to maintain uninter- 
rupted and high-grade service. 

After a full consideration of all the elements presented in this matter, the 
Commission is of the opinion that since the surplus has already been ac- 
cumulated and reinvested in the plant that the stockholders are entitled to 
have issued to them stock in a reasonable amount for the money which 
might have been paid to them in cash, but which was reinvested by them in 
the utility. The Commission, however, is further of the opinion, for the 
reasons heretofore stated, that $600,000 is too large an amount and that a 
stock issue in the amount of $500,000 is all that should be approved and that 
this approval should be conditioned upon the stockholders paying into the 
utility in cash an equal amount, for the reasons hereinafter set out in con- 
sidering the petitioner's second request for new capital. 

New Capital Stock 

In support of that part of its petition asking that it be allowed to issue 
and sell $400,000 of new capital stock, the petitioner submitted the follow- 
ing reasons: 

That during the period of depression following 1929, when wages were low 
and materials were cheap, it saw an opportunity to expand its activities, im- 
prove its service and acquire new exchanges which were in distress, at very 
low cost; that it has expended and is expending large sums of money 
throughout eastern North Carolina in changing manual to automatic ex- 
changes, in acquiring new exchanges, and in extending its service, both toll 
and exchange, to new communities and in providing numerous rural tele- 
phones. That so far it has used its surplus and reserve funds to cover the 
cost of these expenditures and that recently it has become necessary to bor- 
row money; that its program of expansion is far from completion and that 
it will need new capital to carry out its plan in providing service in every 
section within the territory where it operates and that in order to carry 
out this program, which it contends is in keeping with the demand of the 
times, it desires to issue and sell new capital in the amount of $400,000. 



242 ]Sr. C. Utilities Commission 

This Commission is well acquainted with the activities of the petitioner 
in extending and improving its service and is in full accord with what the 
petitioner has already accomplished and what it plans to do in the future. 
The Commission is of the opinion, however, that $400,000 of new capital 
stock to be issued and sold will be insufficient to cover the costs of the im- 
provements and acquisitions which the utility has made and is planning to 
make and it believes, in order that the necessity of borrowing money may be 
obviated, that the stockholders should be required to invest in the utility in 
cash and receive new stock therefor the sum of $500,000 and that the invest- 
ment of said $500,000 in new stock and the issuing of said $500,000 new stock 
from surplus should be inseverable, one conditioned upon the other. 

Wherefore, it is ordered, That the petitioner be and it is hereby author- 
ized and empowered: 

To issue from its surplus account in stock to its present stockholders 
in proportion to the amount of stock held by each stockholder the ag- 
gregate amount of $500,000: Provided, that at the same time new capital 
stock is sold by the petitioner company to the amount of $500,000 and 
the cash is actually paid by the purchasers to the petitioner therefor. 
This 29th day of October, 1936. 

Stanley Winborne, 

Utilities Commissioner. 

F. L. Seeley, 

Associate Commissioner. 

Frank W. Hanft, 

Docket No. 22. Associate Commissioner. 

IN RE: APPLICATION OF CENTRAL ELECTRIC AND TELEPHONE 
COMPANY, A DELAWARE CORPORATION, AND SOUTH EAST 
PUBLIC SERVICE COMPANY, A WEST VIRGINIA CORPORATION, 
FOR THE APPROVAL OF THE TRANSFER OF PROPERTIES AND 
FRANCHISES, AND THE ISSUANCE OF SECURITIES, ALL PUR- 
SUANT TO A PLAN OF REORGANIZATION OF CENTRAL WEST 
PUBLIC SERVICE COMPANY, A DELAWARE CORPORATION, 
UNDER SECTION 7 7-B OF THE NATIONAL BANKRUPTCY ACT, AS 
AMENDED 

Order 

The above proceedings having come on to be heard, and the Commission 
having considered the application filed herein and having heard and 
considered all evidence presented by the parties in interest and having 
considered all instruments and documents filed herein and having also 
heard the arguments of counsel upon all such evidence, and upon all the 
instruments and documents heretofore filed herein and upon all the 
proceedings heretofore had herein, the Commission is satisfied and finds: 

(1) That the public convenience and necessity requires the acquisition 
of the public utility property now under ownership of South East Public 
Service Company by Central Electric and Telephone Company. 

(2) That the issue of the securities herein and hereafter set out are 
for a lawful object within the corporate purposes of Central Electric and 



Decisions and Adjustments of Complaints 243 

Telephone Company, is compatible with the public interest, is necessary 
and appropriate for and consistent with the proper performance by the 
said utility of its service to the public as such utility and will not impair 
its ability to perform that service, and is reasonably necessary and appro- 
priate for such purposes. 

Now, THEREFORE, IT IS ORDERED BY THE COMMISSION, That Said Central Elec- 
tric and Telephone Company is hereby permitted, authorized and empow- 
ered to acquire the properties situated in North Carolina set forth in 
Exhibit B attached to the application filed herein and all other property, 
franchises and assets of said South East Public Service Company, from 
said South East Public Service Company, located in the State of North 
Carolina, upon the condition that it cause the payment or cancellation 
of all indebtedness including the capital stock of said South East Public 
Service Company, with the exception of items of accounts payable, accrued 
taxes, miscellaneous current liabilities and deferred liabilities (owed to 
others) and that with respect to such excepted items it cause such to be 
paid or cancelled or that it assume the same. 

It is FURTHER ORDERED, That the public convenience and necessity requires 
vsuch acquisition and a certificate of Public Convenience and Necessity 
as to such acquisition is hereby granted. 

It is further ordered. That said Central Electric and Telephone Company 
is hereby permitted, authorized and empowered to issue the following 
securities to be distributed among the security holders of Central West 
Public Service Company, pursuant to the Plan of Reorganization as 
approved at final confirmation by the District Court of the United States 
for the District of Delaware. 

First Mortgage and Collateral Lien 5% Bonds, Series A, dated 
January 1, 1935, due January 1, 1955, in the principal amount of $3,592,- 
750. 

61,590 shares of Cumulative Preferred Stock of the par value of 
$50 each, having a total par value of $3,079,500. 

701,237.1 shares of Common Stock of the par value of $1 each. 

It is further ordered. That said Central Electric and Telephone Company 
be and it hereby is permitted, authorized and empowered to secure said 
bonds by a First Mortgage upon any property and franchises to be 
acquired by it in North Carolina, and also upon all properties and fran- 
chises to be acquired by it elsewhere. 

It is further ordered. That all the above orders are subject, however, to 
the basis of allocation of interest charges against the North Carolina 
properties being submitted, found satisfactory, and approved by this Com- 
mission and further subject, however, to the final confirmation by the 
United States District Court at Wilmington, Delaware, of said Plan of 
Reorganization and the approval by said Court of the terms of said First 
Mortgage and the supervision by said Court of the carrying out and 
consummation of said Plan of Reorganization. 



244 ^. C. Utilities Commission 

Provided, however, That any amendments to or changes in the Plan of Re- 
organization, even though made pursuant to the plan, shall be subject 
to the approval of this Commission. 

By order of the Commission: 

R. 0. Self, Chief Clerk. Stanley Winborne, 

Raleigh, N. C, February 7, 1936. Commissioner. 

(Seal) F. W. Hanft, 

Order No. 662. Associate Commissioner. 

IN RE: APPLICATION OF DURHAM TELEPHONE COMPANY WITH 
RESPECT TO CHANGE OF CLASSIFICATION OF SERVICE IN 
DURHAM TERRITORY, NORTH CAROLINA 

Order 

This cause comes on to be heard before the Utilities Commission upon the 
petition of the Durham Telephone Company, asking that two party tele- 
phone service be declared obsolete with respect to all future subscribers 
for said service. 

The petition in this cause was filed on July 18, 1936, copy of which 
was duly served upon the Mayor of the City of Durham, and the case 
set for trial Wednesday, October 21st, 1936, and notice of said hearing 
duly published in the Durham Herald Company newspapers, published and 
circulating in Durham County. Thereafter, at the request of the City 
of Durham, through its attorney. Col. S. C. Chambers, the hearing was 
postponed, in order that the said City might have more time to file protest 
or answer, and later set for November 30th, 19 3 6, of which notice was 
again published in the said Durham Herald Company newspapers. 

On said November 30th, 1936, the Durham Telephone Company, peti- 
tioner, appeared through its resident, T. D. Wright, General-Manager E. 
H. Danner and attorney Basil Watkins, Esq., all of Durham, North 
Carolina. The City of Durham interposed no opposition, filed no answer 
and, on November 18, 1936, through Col. S. C. Chambers, advised this 
Commission, in writing, that the City of Durham, "Has withdrawn its 
protest against allowing the Durham Telephone Company to discontinue 
additional two party telephone lines." No protest or opposition from 
anyone was made at the hearing. 

From the evidence and aflldavit adduced at the hearing, it was made 
to appear that telephone demands in Durham are quite different from 
those which exist in most cities, in that there are few two party lines in 
service and that the telephone subscribers are confined principally to two 
classes, namely, one class which demands single party service and the 
other class which demands four party service. Also it was shown that 
the two party subscribers are so few and scattered that the majority of 
the subscribers now on two party service and paying the rates therefor 
are getting single party service at a two party rate, due to the fact that 
there is no other subscriber in the same vicinity who desires two party 
service, all of which means that some subscribers are paying one rate for 
single party service and others another. 



Decisions and Adjustments of Complaints 245 

It was further shown that the question of elimination of two party- 
service was thoroughly discussed and considered by the Board of Alder- 
men in the City of Durham and that as the result of said investigation 
the City of Durham decided to interpose no objection and directed its 
attorney, Col. S. E. Chambers, to write the letter to this Commission 
hereinbefore referred to. The petitioner is not asking that two party 
service be denied the present subscribers receiving two party service but that 
two party service be declared obsolete with respect to all future sub- 
scribers, and with the understanding that any present subscriber to a 
two party service, who voluntarily abandons the service, would be con- 
sidered as a new subscriber at any time in the future and would have 
available to him only such class of service as is then in effect. 

Upon consideration of the whole case, this Commission is of the opinion 
that the petitioner is entitled to the relief sought, except as hereinafter 
appears. 

Wherefore, it is ordered. That the Durham Telephone Company be and it 
h' hereby authorized and directed to continue the classes of service now 
being rendered to all of its present subscribers, but that the two party 
service be discontinued from date hereof, with respect to all future 
subscribers, and that any subscriber now receiving two party service, 
who voluntarily discontinues his subscription, be thereafter treated as a 
new subscriber and entitled only to the classes of service in effect from 
and after the date of this order: Provided, the moving of the residence 
of a subscriber from one place to another shall not be deemed a voluntary 
discontinuance of his subscription. 

This 1st day of December, 19 3 6. 
Attest: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 782. 

IN RE: PETITION HICKORY TELEPHONE COMPANY FOR AUTHOR- 
ITY TO INCREASE ITS CAPITAL STOCK 

Order 

The Hickory Telephone Company, under date of June 20, 193 5, peti- 
tioned this Commission for authority to increase its capital stock from 
$67,200 to $108,000. 

The Company sets forth in its petition that the rapidity of the growth 
of the Town of Valdese makes it necessary for the Company at its 
exchange there to change from the magneto system to the common 
battery type and that it desires to erect a building of its own at that 
point. The proposed expenditures are listed as $9,800 for construction 
of building; $900 for purchase of lot; $3,500 for central office equip- 
ment, making a total of $14,2 00. Authority for a common stock issue, 
for cash, is requested to make these improvements. 

Petitioner also sets forth that the Company holds 26 5 shares of its 
common stock in its treasury for which it paid $150 per share. It asks 



246 N". C. Utilities Commission 

that it be permitted to convert this treasury holding into $2 6,500 of 
common stock to be issued as a stock dividend to its present holders of 
common stock. 

In justification of the proposed increase in capital stock, the petitioner 
asserts that no dividends were paid on its common stock from 1920 to 
1930 and that it was compelled by force of circumstances to acquire, from 
fjinds in its surplus, the stock now held in the treasury. As a further 
justification, it is asserted that the Company feels that its plant, including 
its three exchanges, is worth in excess of $250,000. 

The book value of the plant and equipment of the Company, according 
to its 1934 Annual Report filed with this Commission is shown for 
December 31, 1934, as $316,179.77. The field inventory of the Company, 
filed under Order U-4 of this Commission, gives the present value of its 
property at $216,802, exclusive of going concern value and working 
capital. 

From the foregoing before us, it appears that if the capital stock is 
increased as petitioned it will then not exceed 35 per cent of the claimed 
book value of the Company's property or 50 per cent of the appraised 
value. Assuming that the appraised value is liberal and it should be 
determined that it was 25 per cent excessive, an assumption the Company 
does not admit, then the increased capital stock would only be 6 6 per 
cent of the discounted appraised value. 

In consideration of these facts and in further consideration of the 
value of the property, knowledge of which has been acquired by outside 
investigation by this Commission; the fact that no dividends were paid 
for ten years prior to 1931, and the further consideration of the potential 
growth of the Valdesean section, which is served by the petitioner, this 
Commission concludes that the request is a reasonable one and should be 
granted, therefore, it is 

Ordeeed, That the Hickory Telephone Company be permitted to increase 
its capital stock to $108,000 in the manner set forth in said petition. 
This 1st day of July, 1935. 
Attest: Stanley Winbokne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 442. 

JN RE: APPLICATION FOR CERTIFICATE OF CONVENIENCE AND 
NECESSITY TO BUILD CERTAIN TELEPHONE LINES IN OLD TOWN 
TOWNSHIP, FORSYTH COUNTY. 

Order 

This is the application of J. Lee Keiger for certificate of convenience 
and necessity to construct certain telephone lines in the northwestern 
section of Old Town Township, Forsyth County, 

This application has not been advertised but notice has been served 
upon all the parties in the territory that the Commission knows might 
be adversely affected by the construction of an additional telephone line 
in that vicinity, and no objection has been filed with the Commission fronf 



Decisions and Adjustments of Complaints 247 

such persons or corporations. Some parts of the section which the 
proposed lines propose to serve have had telephone service more than 
three years ago but the lines are not now in service and have not been 
for a long time, and there appears to be no disposition on the part of 
the former owners of such line to rebuild same. 

The petitioner in this case has already built a telephone line to serve 
his own residence from the vicinity of the residences of W. D. Thomas 
and R. G. Holder and the people in the vicinity of Old Town School 
community now go some distance to Mr. Keiger's house to use his phone 
facilities. Mr. Keiger is now proposing to continue the line from his 
house a few miles through the Old Town School community to a point 
on the Yadkin River about where W. D, Yarboro now lives and to build 
another line from the intersection at the forks of the road at Old Town 
School south to the Conrad community and from the Old Town School 
northeast to a point near the residence of F. E. Sprinkle. 

This is a very prosperous section of Forsyth County and a great many 
of the people who live in that community work in Winston-Salem and 
need communications and are very much pleased with the prospect which 
Mr. Keiger offers. Therefore, it is the Commission's belief that public 
convenience and necessity will be served by the granting of this petition. 

Therefore, it is ordered, That the petition, as filed, be granted and that 
Mr. Keiger be authorized to build the lines as specified in the foregoing, 
of such standard materials as will provide adequate and efficient telephone 
service; and it is 

Further ordered, That the petitioner file with this office and obtain ap- 
proved rates before the said service is put into effect; and it is 

Further ordered, That the petitioner advise this office the day said prop- 
erty is put into service; and it is 

Further ordered. That construction on the lines herein proposed shall be- 
gin within six ( 6 ) months from the day of this order. For the failure 
to begin construction within the six (6) months' period, this Order shall 
be void and shall be automatically cancelled. 

This 9th day of June, 1936. 
By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 718. 



IN RE: APPLICATION OF J. LEE KEIGER TO TRANSFER THE 
AUTHORITY TO MAINTAIN AN ORDER DATED JUNE 9, 1936, TO 
OLD TOWN TELEPHONE SYSTEM, INCORPORATED 

Now comes J. Lee Keiger and presents the Order of this Commission, 
dated June 9, 1936, which order was a Certificate of Convenience and 
Necessity granting authority to build a telephone line in a certain locality 
in Forsyth County, and the said J. Lee Keiger requests that the said 
authority be transferred to the Old Town Telephone System, Incorporated. 

Therefore, it is ordered. That the said certificate be and the same is here- 



248 ^. C. Utilities Commission 

by amended to insert the name of the Old Town Telephone System, Incor- 
porated in lieu of that of J. Lee Keiger when and wherever it may appear 
ill the said order of June 9, 19 3 6. 

This August 26, 1936. 

By order of this Commission: Stanley Winborne, 

R. O. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 718. 

IN THE MATTER OF LEE TELEPHONE COMPANY ON APPLICATION 
FOR AUTHORITY TO ISSUE SECURITIES 

Order 

This cause came on this day to be heard upon the application of the Lee 
Telephone Company, duly verified, filed on December 10, 1936, and the 
financial statement of said company exhibited, and the Commission being 
fully advised in the premises and finding that the proposed plan (a) to pay 
off and discharge the bonds now outstanding, with accrued interest thereon, 
which amount to approximately, as of January 15, 1937, the sum upon which 
the same have been called for payment of $189,000,00, and interest on $180,- 
000.00, a part thereof, at the rate of 5^^ per cent per annum, and (b) to pay 
the indebtedness to the Automatic Electric Company of Chicago, Illinois, 
amounting approximately to $28,000.00, and (c) to use the remainder of the 
proceeds of the sale of the bonds petitioned to be issued and sold for the 
construction, extension and improvement of facilities of the said Lee Tele- 
phone Company, are related and proper elements of a plan, the purpose of 
which is the discharge or lawful refunding of obligations of the said com- 
pany and the perfecting of its equipment; and further finding that said plan 
is for a lawful object within the corporate purposes of the Company, is com- 
patible with the public interest, is necessary or appropriate for or consist- 
ent with the proper performance by the company of its services to the public 
as a public utility and will not impair its ability to perform that service, 
and is reasonably necessary and appropriate for such purpose, it is hereby: 

Ordered, adjudged and decreed. That said plan be, and the same is hereby 
approved, and that the Lee Telephone Company be, and hereby is, authorized 
and empowered, to issue and sell Two Hundred and Twenty-five Thousand 
($225,000.00) Dollars par value of its bonds bearing date of December 15, 
1936, and payable twenty (20) years after date, with interest from date at 
four (4%) per cent per annum, the said Lee Telephone Company to receive 
from the purchaser thereof par, the same to be secured by deed of trust or 
mortgage bond on all of the assets of said Lee Telephone Company, both in 
Virginia and North Carolina; that the proceeds of said bonds be used in pay- 
ing the cost and expenses of the issuance and sale of said bonds, recordation 
fees, and all other costs in connection therewith, and in the discharge of the 
obligations and the improvement of the facilities of said company as set 
forth in the aforesaid plan. 

Provided, however. That nothing in this order shall be construed to obli- 
gate the State of North Carolina to pay or guarantee, in any manner whatso- 



Decisions and Adjustments of Complaints 249 

ever, the bonds aforesaid, or be construed or represented as involving an ex- 
pression of opinion on the part of this Commission as to the value of said 
bonds; and 

Provided further, That on or before April 1st, 1937, the said Lee Telephone 
Company shall file with this Commission a report showing the results of the 
transactions had pursuant to this order; and 

Provided further. That this proceeding be, and the same is hereby contin- 
ued generally on the docket of this Commission for the purpose of the filing 
of such report and for any other action that may be found or deemed neces- 
sary or advisable. 

This December 11th, 1936. 

Attest: Stanley Winborne, 

R. 0. Self, Chief Clerk. . Utilities Commissioner. 

Docket No. 913. 



PETITION OF THE LEXINGTON TELEPHONE COMPANY FOR AUTHOR- 
ITY TO INCREASE ITS CAPITAL STOCK. 

Order 

This petition was filed by the Lexington Telephone Company asking au- 
thority to increase its common capital stock. 

This company was organized about twenty-five (25) years ago and began 
business in a very small way. During that time it has increased its common 
capital stock to $28,000 and its preferred to $18,500. Its reports to this Com- 
mission show a surplus of $38,395.88 and a depreciation reserve of $59,551.36, 
and other deferred credits of and accrued taxes of $691.62. This reveals a 
total book value of invested capital of $145,138.86, which the petitioner rep- 
resents is the actual money cost of the property at the time of application. A 
detailed inventory and appraisal of the property by Gustav Hirsch Organiza- 
tion, Appraisal Engineers, as of January 1, 1934, showed the reproduction 
value of plant and property to be $203,538.35 and that its value in present 
condition is $182,150.35, exclusive of going concern value and other overheads 
which are usually disputed elements of value upon which earnings may be 
computed. The company owns a two-story brick building in the city of Lex- 
ington, has in place 1,050 telephones, and its wires are on first-class creosoted 
poles. It has a sixteen (16) mile toll line connecting it with Salisbury and 
a six-mile toll line connecting it with Thomasville. 

The company is in a healthy condition, due to its economic management. 
Its Secretary-Treasurer has been paid a salary of $10.00 per month and other 
salaries of officers in proportion. This policy was begun economically in 
order to be able to pay operators and linemen a reasonable wage when the 
revenue of the company was small and this policy has been continued re- 
cently because the growing community demanded a gradual and continual in- 
crease in investment and this, when possible, was taken from earnings in- 
stead of paying it out in dividends. 

The first proposal presented to this Commission was to increase the com- 
mon stock from $28,000 to $80,000 by taking $33,500 from surplus and con- 
verting the $18,500 preferred to common. This plan would leave the surplus 



250 ^N". C. Utilities Commission 

at $4,895.88, which was considered too small for a plant of this size and value. 
Therefore, that proposition was dismissed and the petitioner was permitted 
to amend its application to increase the common by $22,000 from surplus. 
The application of this proposition to its present set-up is as follows: 

Present Proposed 

Capital Stock, Common $ 28,000.00 $ 50,000.00 

Capital Stock, Preferred 18,500.00 18,500.00 

Surplus 38,395.88 17,395.88 

Depreciation Reserve 59,551.36 59,551.36 

Other Deferred Credits 150.00 150.00 

Taxes Accrued 541.62 541.62 

Totals $145,138.86 $145,138.86 

It will be noted that the above disposition does not unreasonably deplete 
the surplus. 

The company has been able to build up this surplus from earning because 
it was not taken for salaries and dividends at the time of earning and the 
only way that its stockholders can be compensated for prudent management 
over this long period is in the way herein proposed. 

Thekefore, it is ordered, That the petition be granted and that petitioner 
be and it is hereby authorized to issue $22,000 additional common stock from 
surplus on or before December 31, 1936, with the express understanding that 
any future increases of such common stock shall be from the sale of such 
stock for money, after adequate and proper showing to and authority from 
this Commission. 

This November 19, 1936. 

Stanley Winborne, 

By order of the Commissioner: Utilities Commissioner. 

Frank W. Hanft, 
R. 0. Self, Chief Clerk Associate Commissioner. 

F. L, Seeley, 
Docket No. 857. Associate Commissioner. 

IN RE: INCREASE IN CAPITAL STOCK OF NORFOLK AND CAROLINA 
TELEPHONE AND TELEGRAPH COMPANY. 

Order 

This is the application of the Norfolk and Carolina Telephone and Tele- 
graph Company for increase in capital stock. The applicant had a book 
investment January 1, 1933, of $560,596.64 including $200,000.00 in capital 
stock outstanding. Since that time an inventory appraisal has been made 
of its physical properties which shows $592,141.62, exclusive of Going Con- 
cern value. The company owns in addition to the above, the property of the 
Norfolk and Carolina Telephone and Telegraph Company of Virginia, which 
increases the value of its physical assets by between fifty and ninety thou- 
sand dollars, which will run its book and appraised value well over six hun- 
dred thousand dollars. 

The Commission is reluctant to permit increases in capital from surplus 
without a definite finding that there is ample value in property to warrant 



Decisions and x\djustments of Complaints 251 

such increase, and then that such increase will not make the outstanding 
stock issue more than fifty per cent of the unquestionable value thereof. 

Another important feature which must be considered is that the revenues 
are not being depleted by the payment of exorbitant salaries, and in this case 
the salaries being paid by the applicant are very reasonable; therefore, it is 

Ordered, That the petitioner be and is hereby authorized to increase its 
said capital stock issue from $200,000,00 to $300,000.00 as of date of this or- 
der. 

This December 18, 1934. 

By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 5. 

IN RE: APPLICATION OP THE NORTH STATE TELEPHONE COM- 
PANY FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECES- 
SITY AUTHORIZING THE INCREASE IN THE AUTHORIZED CAPITAL 
STOCK OF SAID COMPANY FROM $500,000 to $550,000.00 AND 
FURTHER AUTHORIZING THE ACQUISITION AND OPERATION OF 
THE PROPERTY AND BUSINESS OF THE THOMASVILLE TELE- 
PHONE COMPANY 

Order 

This is the petition of the North State Telephone Co., of High Point, 
N. C, for certificate of public convenience- and necessity authorizing the 
increase of the authorized capital stock of the Company from $500,000 
to $550,000.00 to further authorize the acquisition and operation of all 
the property including the telephone exchange and toll lines of the Thomas- 
ville Telephone Company, of Thomasville, N. C, in exchange for 583 
shares of the capital stock of the North State Telephone Company of the 
par value of $100.00 each and the assumption by the North State Tele- 
phone Company of debts outstanding of the Thomasville Telephone Com- 
pany in the sum of $8,000.00. Also included in this application was 
application of Thomasville Telephone Company to sell said property and 
business to the North State Telephone Company upon the aforesaid terms 
and conditions. 

This application was filed with the Utilities Commission on the 15th 
day of August, 1935, and representations were made that on July 1, 1935, 
the capital stock of the Thomasville Telephone Company was $35,000 
and the corporate surplus was $24,076.14, making a total net worth of 
$59,076.14, which is proposed to be exchanged and acquired by 583 
shares of the capital stock of the North State Telephone Company of the 
par value of $100.00 each and the further assumption by said North State 
Telephone Company of $8,000.00 outstanding indebtedness of the Thomas- 
ville Telephone Company. It was represented that the Thomasville Tele- 
phone Co., has a two story brick central office building located at No. 23 
Salem Street in the City of Thomasville, N. C. with automatic central 
office equipment, about 640 company owned telephone stations in opera- 
tion, and copper toll lines reaching approximately 3% miles, or approxi- 
mately half the distance, from Thomasville to High Point, and also 



252 X. C. Utilities Commission 

copper toll lines reaching approximately half the distance from Thomas- 
ville to Lexington, N. C, or an approximate distance of six miles. The 
total assets of the Thomasville Telephone Company, were on July 1, 
1935, in the amount of $97,582.16. The petitioner is not asking that a 
write up be allowed by the Commission in connection with this transaction 
—all costs as shown by the books being the actual money costs of the 
property involved, and it being contemplated that Thomasville Tele- 
phone Company's account shall be consolidated with a similar account 
of the North State Telephone Co., including the reserve for depreciation 
of $29,243.82. The petitioner represents that some economy will result 
in the operation of the Thomasville Telephone Co., property and business 
after the acquisition thereof by the larger North State Telephone Co., and 
that the. public will be provided with more efficient service. The petitioner 
proposes that all of the property and business of the Thomasville Tele- 
phone Company would be transferred to, and taken over by, the North 
State Telephone Co., and that 583 shares of stock in the North State 
Telephone Co., of the par value of $100.00 each will be issued by the 
North State Telephone Co., to the Thomasville Telephone Co., which 
shares will be distributed among the stockholders of the Thomasville 
Telephone Co., pro rata as their holdings are shown on the books of the 
Thomasville Telephone Company on August 27, 1935. 

The Commission is of the opinion that the aforesaid 583 shares of the 
North State Telephone Company stock represents a proper and reasonable 
consideration for the property and business of the Thomasville Telephone 
Company. The Commission is further of the opinion that said acquisition 
and transfer is to the interest of the public and that the said North State 
Telephone Company is able to adequately care for the telephone needs 
of the communities now served by the Thomasville Telephone Company 
and that said No -th State Telephone Co., can obtain the necessary funds 
tor the expansion and enlargement of the system of the Thomasville 
Telephone Co., as the growing need of the public demands, and the Com- 
mission finds that the interest of the public will be subserved in all 
respects by the said proposed acquisition and transfer, and finds that 
same is to the public convenience. 

Therefore, it is ordered. That the petition be, and the same is hereby 
granted, and the North State Telephone Co., is hereby authorized (1) to 
increase its authorized capital stock from $500,000 to $550,000, and the 
Secretary of State is hereby authorized to issue a fertificate of amend- 
ment to the charter of the North State Telephone Co., in the manner 
provided by law in order that such authorized increase may be had; (2) 
that the North State Telephone Co., is hereby authorized to purchase, 
acquire and operate, and the Thomasville Telephone Co., is authorized 
to sell and transfer, the telephone plant and system, and all property 
and business of whatsoever kind and nature, of the Thomasville Telephone 
Co., for the consideration above set forth; (3) said North State Telephone 
Company is authorized to issue 583 shares of its capital stock of the par 
value of $100 each to the Thomasville Telephone Company, and to assume 
indebtedness of the Thomasville Telephone Company, in the amount of 
$8,000.00 for the purposes above mentioned; (4) and the North State 



Decisions and Adjustments of Complaints 253 

Telephone Co., is hereby authorized to operate the exchange and toll 
telephone property of the Thomasville Telephone Co., in accordance with 
law, and all rules, regulations, rates, charges, now in effect as to the 
Thomasville Co., are ordered continued by the North State Telephone 
Company. 

This 30th day of August, 1935. 

By order of the Commission: Stanley Winborne, 

R. 0. Self, Chief Clerk. Utilities Commissioner. 

Docket No. 4 97. 

IN RE: SOUTH EAST PUBLIC SERVICE COMPANY, APPLICATION 
FOR AUTHORITY TO DISCONTINUE TELEPHONE CENTRAL 
OFFICE AT EAGLE SPRINGS, NORTH CAROLINA, AND SERVE 
SUBSCRIBERS FROM CANDOR AND WEST END, NORTH CAROLINA 

Order and Notice 

Whereas, South East Public Service Company has filed application for 
authority to discontinue its telephone central office at Eagle Springs, 
North Carolina, and to provide service for the present fourteen (14) 
company owned stations on rural part lines from applicants Candor, North 
Carolina, exchange; to provide service for the present five (5) service 
stations from applicant's West End, North Carolina, exchange; to charge 
the correct rates authorized for Candor, North Carolina, with no toll 
charge on calls between Eagle Springs and Candor. 

It is ordered that leave be granted to anyone interested to file objection 
to said application with the Commission at any time on or before 10:00 
o'clock on the tenth day of April, 19 36, and this matter be set for hearing 
at a session of the Commission to be held in its Hearing Room, at the 
Commission's Office Building in the City of Raleigh on the said sixteenth 
day of April, 1936, at 10:00 o'clock a. m., at which time anyone may 
appear and make such objection thereto as may be deemed proper. 

It is further ordered that the applicant give notice of the filing of said 
application and the time and place of said hearing by mailing by registered 
mail a copy of this order to each of the said fourteen (14) subscribers 
and to the said service line, to their regular mailing address. Such notice 
to be mailed not less than ten days prior to the time of said hearing. 
Applicant shall make due return of said mailing on or before the day of 
hearing. 

This March 19, 19 3 6. 

By order of the Commissioner: Stanley Winborne, 

R. 0. Self, Chief Clei^h. Utilities Commissioner. 

Docket No. 687. 



254 jN". C. Utilities Commission 

APPLICATION OF SOUTH EAST PUBLIC SERVICE COMPANY, FOR 
AUTHORITY TO: PROVIDE 2 4-HOUR SERVICE, CHANGE METHOD 
OF BILLING AND ADJUST TELEPHONE CHARGES AT ITS YADKIN- 
VILLE, NORTH CAROLINA, EXCHANGE 

Okder 

In this application South East Public Service Company has requested 
authority to: 

1. Provide tvi^enty-four hour continuous telephone service at its Yad- 
kinville, N. C, exchange. 

2. Render bills of subscribers accounts monthly in advance rather 
than in arrears as at present. 

3. To apply rates and charges as of December 1, 1935, as set forth 
in N. C. Second Revised Sheet Nos. 1, 2 and 3 (Local Exchange Tariff) 
Yadkinville, N. C. 

4. Provide a 25 cent discount from gross rates on all accounts paid 
in full on or before the 10th of the month. 

At the present time telephone service is provided to subscribers of the 
Yadkinville exchange between the hours of 7:00 o'clock a.m. and 9:00 
o'clock p. m. on week days. 

Attached to the application are exhibits showing: 

Exhibit No. 1 — Statement of revenues and operating expense for year 
19 34. This exhibit indicated that for the year 1934 the company's net 
operating revenue at said exchange before general office charges and 
depreciation was $144.18. 

Exhibit No. 2 — New rate schedule filed by the company. 

Exhibit No. 3 — Statement showing the name, telephone number, class 
of service, old rate paid and new net rate to be paid under new rate 
schedule, of all present subscribers of the Yadkinville exchange. This 
exhibit indicates that the Company will receive $16.00 per month in- 
creased exchange revenue from present subscribres when new rates are 
applied. 

Exhibit No. 4 — A petition signed by all present subscribers of the 
Yadkinville exchange except the four following subscribers: State Prison 
Camp, Tel. No. 36; County Board of Education, Tel. No. 24; County 
Superintendent J. T. Reese, Tel. No. 3 and E.R.A. Office, U. S. Govt., Tel. 
No. 46, requesting the Company to provide twenty-four hour continuous 
telephone service and agreeing that the Company may render bills for 
service in advance and agreeing to pay monthly charges set out after their 
names, same being the charges for the class of service indicated as set 
forth in the new rate schedule, provided a 25 cent discount is permitted 
from the gross rate. 

Of the subscribers who have not signed the petition, three are Govern- 
mental olfi,ces and employees in charge could not properly sign. J. T. 
Reese is the only individual subscriber who has not signed. 

The changes to be made by the Company will require additional invest- 
ment and increased operating cost. These changes should make the 



Decisions and Adjustments of Complaints 255 

service to all subscribers more valuable and the Company should be able 
to connect additional subscribers. 

The Commission is of the opinion that in view of the signed petition 
the Company should be permitted to make the requested changes, subject 
to hearing upon proper complaint, therefore, 

It is okdered, That South East Public Service Company be and is hereby 
authorized and directed to provide twenty-four (24) hour continuous 
telephone service at its Yadkinville, North Carolina, exchange as soon as 
possible but not later than December 1, 1935. 

Further, That the Company be authorized to place in effect on December 
1, 1935, N. C. Second Revised Sheets Nos. 1, 2 and 3 (Local Exchange 
Tariff) Yadkinville, N. C, providing the 2 5 cent discount feature. 

Further, That the company be authorized to render bills covering sub- 
scribers accounts monthly in advance, as of December 1, 1935. 

Further, That this order is subject to hearing upon proper complaint. 
By order of the Commission. 

R. 0. Self, Chief Clerk. Stanley Winborne, 

Raleigh, N. C, November 21, 1935. Utilities Commissioner. 

Yadkinville, N. C. 

(N. C. Second Revised Sheet No. 1) 

(Cancelling N. C. First Revised Sheet No. 1) 

SOUTH EAST PUBLIC SERVICE COMPANY 

Local Exchange Tariff 

1. This tariff is subject, except as otherwise provided herein, to the Gen- 
eral Exchange Tariff, which tariff is hereby made a part of this tariff. 

2. The rates specified herein, with mileage charges when applicable, pay- 
able monthly in advance, entitle subscribers to an unlimited number of local 
messages to all stations bearing the designation of Yadkinville Central Of- 
fice. 

Monthly Rates for Wall or Desk Telephone Service and 
Their Application 

A. Within the Base Rate Area, i.e., the municipal limits of Yadkinville, 
North Carolina, as of December 1, 1935, and within an area including a strip 
one-quarter mile wide on either side of North Carolina State Highway No. 
60, extending one-half mile beyond the east and west municipal limits of said 
town, as shown by Sheet No. 3 of this tariff, flat rates are quoted as follows: 

Individual Five Party Extension 

Line Station Line Station Station 

Business $3.25 $2.25 $0.75 

Residence 2.25 1.75 .50 

B. Outside the area indicated in "A" and within the Yadkinville exchange 
for service indicated in "A" the rates shown in "A" together with estab- 
lished mileage charges as specified in the General Exchange Tariff. 



256 ]^. C. Utilities Commission 

C. Outside the area indicated in "A" and within a distance of five miles, 
of the base rate area, the following rates apply for the class of service here 

indicated: 

Ten Party Rural 

Line Station Extension 

Metallic Circuit Station 

Business $2.25 $0.75 

Residence 1.75 .50 

D. Outside the area indicated in "C" and within the Yadkinville exchange 
for service indicated in "C" the rates shown in "C" apply, together with es- 
tablished mileage charges as specified in the General Exchange Tariff. 

Yadkinville, N. C. 

(N. C. Second Revised Sheet No. 2) 

(Cancelling N. C. First Revised Sheet No. 1) 

SOUTH EAST PUBLIC SERVICE COMPANY 

Local Exchange Tariff 

E. Outside the area indicated in "A" and within the Yadkinville exchange 
for subscriber owned service stations, the following rates apply: 

Service Station 

Business $0.50 

Residence 25 

F. The above rates, except extension and service stations are subject to 
25-cent discount, if paid on or before the tenth of the month in which bill is 
received. In order for a subscriber to be entitled to the discount the account 
must be paid in full. 

G. Other rates and regulations: 

1. Hand telephone set rate 25 cents in addition to wall set rate. 
H. Throughout the exchange area: 

The rates for service and equipment not specifically shown in this 
local exchange tariff are given in the General Exchange Tariff. 

Issued and filed November 9, 1935, with North Carolina Utilities Commis- 
sion cancelling filing of September 20, 1935. 
Effective December 1, 1935. By L. D. Densmore, 

Approved November 19, 1935. General Manager, 

Docket No. 596. Charlottesville, Va. 



Decisions and Adjustments of Complaints 257 

IN RE: SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY 
TELEPHONE RATES IN ALL OP ITS EXCHANGES. 

Order 

By order dated May 2, 1934, the Utilities Commissioner of the State of 
North Carolina required the Southern Bell Telephone and Telegraph Com- 
pany to show cause why its present exchange rates in the City of Raleigh 
should not be reduced as much as, or more than, stated in a proposed new 
schedule of rates. Exchange rates elsewhere in the State were to be sub- 
jected to reductions on the basis of those eventually set for Raleigh after 
due hearing. Pursuant to the above order a series of hearings were held 
at intervals before the Utilities Commission, beginning on June 27, 1934, and 
concluding September 14, 1934. Over one thousand typewritten pages of tes- 
timony were introduced, together with numerous, bulky and complicated 
exhibits setting forth in detail the operations of the company and its pres- 
ent condition. During the course of the proceedings, without objection, the 
scope of the hearing was enlarged. The hearing began as an inquiry de- 
signed to result in fixing Raleigh rates, which were to be used as the basis 
for fixing rates elsewhere. It was enlarged into an outright investigation 
of all exchange rates of the company in the State. 

The object of this proceeding, then, is to determine what exchange tele- 
phone rates to be charged in the municipalities of the State where the com- 
pany does business, will enable the company to earn a fair return, and no 
more than a fair return, on the fair value of its property. The first step 
in arriving at this object is to determine the value of the company's prop- 
erty situated within the State and devoted to intrastate business. Accord- 
ing to an exhibit introduced by the company, as Duncan Exhibit 9, the orig- 
inal cost, without depreciation or going concern value, of the property located 
in North Carolina and devoted to intrastate use, in 1933 was $18,593,858. 
That is to say, the property according to the records of the company actually 
cost this much as it was installed from time to time. Examination of the 
company's exhibit called Duncan Exhibit 29, Sheet 2, shows that between 
the years 1923 and 1930, inclusive, the total additions made to the company's 
property amounted to $22,715,414. Duncan Exhibit 29, however, relates to 
property used in both interstate and intrastate business. Comparison of the 
total investment in Duncan Exhibit 3, which includes property devoted to 
interstate business, with Duncan Exhibit 9, which includes only intrastate 
property, shows that 10 per cent of the property is interstate that is charge- 
able to interstate use, hence to be excluded in a calculation of proper intra- 
state rates. Further, some of the property added since 1923 has also been 
retired. On the other hand, considerable amounts of the present property 
of the company must have been added between 1916 and 1922, for which 
years no figures are given the Commission as to additions. Excluding from 
consideration the interstate property and property added after 1916 but since 
retired, the Commission is of the opinion that at least $12,000,000, and prob- 
ably more, of the $18,593,858 investment represents property added between 
1916 and 1930, inclusive. But present values of property added during those 
years are much less than the values at the time of the investment, due to 
the fall in the price level. The best measure of this decrease in the general 



258 ]^. C. Utilities Commission 

level of prices is to be found in the Bureau of Labor Statistics Index of 
Wholesale Prices. Taking the prices prevailing during 1926 as 100, the rela- 
tion of prices from 1913 to the present time is as follows: 

1913 69.8 

1914 68.1 

1915 69.5 

1916 85.5 

1917 117.5 

1918 131.3 

1919 138.6 

1920 154.4 

1921 97.6 

1922 96.7 

1923 100.6 

1924 98.1 

1925 103.5 

1926 100.0 

1927 95.4 

1928 96.7 

1929 95.3 

1930 86.4 

1931 73.0 

1932 64.8 

1933 65.9 

January, 1934 72.2 

July, 1934 74.8 

Source for the period 1929-1934: ''Federal Reserve Bulletin,'' September, 
1934, p. 619. 

Previous issues for previous years. 

These figures may properly be considered for their bearing on the relation- 
ship between cost and present value. See Los Angeles Gas and Electric Cor- 
poration vs. R. R. Comm., 289 U. S. 287, 53 Sup. Ct. 637, 77 L. ed. 1180 (1933) 
especially footnote. 

The Commission has also taken into account the testimony of the com- 
pany's witness, Selden, concerning prices charged by the Western Electric 
Company to the telephone company over a comparable period of time. We 
have also borne in mind that some of the material furnished to the tele- 
phone company by the Western Electric Company is not manufactured by 
the latter, but is bought on the market by the latter and resold to the tele- 
phone company. Prices for this type of material follow the trend of gen- 
eral commercial prices. From this evidence we conclude that the loss in 
value due to the price decline on the $12,000,000 of investment already re- 
ferred to is at least 20 per cent or $2,400,000. Deducting this amount from 
the $18,593,858 of investment in North Carolina property devoted to intra- 
state use leaves $16,193,858. 

There must also be deducted from the original cost of, or investment in, 
this property the amount of its loss in value on account of depreciation. 
Methods of calculating depreciation on various classes of the company's 
property, and the actual results of such calculations, have been the subject 
of voluminous testimony and exhibits by the company. We have examined 
this evidence with interest. The company candidly admits that some of 
these calculations depend upon judgment rather than exact observation of 



DECisioisrs AND Adjustments of Complaints 259 

physical facts. Depreciation properly calculated takes into account all fac- 
tors which will produce the eventual retirement of the property, not merely 
the physical deterioration of the property. Obsolescence and inadequacy de- 
pend on future conditions which may or may not fall in line with predic- 
tions based on past experience. Company's witness Hill, in his Exhibits 19, 
p. 7, speaks of growth as a factor which, "more than any other, affects the 
service life of most of the classes of telephone property." And again he 
says it "in many cases is the largest single factor causing retirement." In 
view of the unstable transition period through which the whole industrial 
order of the country is passing, the exact nature of future growth is uncer- 
tain. Some of the factors affecting depreciation, then, are unknown quan- 
tities, as to which experience must keep company with prophesy. At all 
events an examination of Duncan Exhibit 20, which is the balance sheet of 
the company as of December 31, 1933, reveals that the company has accu- 
mulated a reserve for depreciation equal to about 20 per cent of its total 
telephone plant. This reserve the company contends is not excessive. If that 
be true, it means that the property of the company is already 20 per cent 
on its way to complete loss of value due to all factors which cause its re- 
tirement. When we state that obsolescence and inadequacy of the property 
is taken into account, we do not mean that any of the property is now ob- 
solete or inadequate. We merely mean that a part of the life of the prop- 
erty preceding obsolescence or inadequacy has run. If a certain piece of 
property on the average will become obsolete in twenty years, then after 
five years it is twenty-five per cent depreciated by reason of obsolescence. 

We believe that the depreciation on the property of the company as de- 
preciation is above explained amounts to at least the 20 per cent accumu- 
lated by the company as a depreciation reserve. Twenty per cent of $16,- 
193,858, the amount of the investment in North Carolina properties adjusted 
to present prices, is $3,238,771; which, subtracted from $16,193,858 leaves 
$12,955,087 as the total present value of all the company's property located 
within this State and devoted to intrastate business. 

We have also considered in arriving at present value of the company's 
property what it would now cost to reproduce the existing properties new. 
In our judgment the reproduction cost new less depreciation would not be 
greater than the above figure of $12,955,087. We have taken into account 
the testimony of the company's engineer, Mr. Hill, as to reproduction cost 
new less depreciation. His conclusions are set forth in Duncan Exhibit 12, 
wherein the total reproduction cost new less depreciation of intrastate prop- 
erty of the company is fixed at $17,992,900 as of December 31, 1933. It is 
worthy of note that this figure is founded not on an appraisal of all the 
company's property, but on an appraisal of what the company believes to 
be a representative part. Hill Exhibit 12 shows that the property actually 
inspected varied from 6.28 per cent to 100 per cent of the whole, depending 
on the kind of property. In our judgment the figure set by Mr. Hill is alto- 
gether too high. In the first place he took into account only observable de- 
preciation; existing deterioration, existing inadequacy; existing obsolescence, 
etc., rather than the portion of the road toward eventual decay, inadequacy, 
or obsolescence, the property had already traveled. On this basis he ar- 
rived at a depreciation of about 5 per cent. Record Book 2, p. 94. Accord- 
cording to Mr. Hill himself if all factors going to produce retirement were 



260 N. C. Utilities Commission 

taken into account the depreciation would be the percentage accumulated in 
the depreciation reserve, or about 20 per cent. Record Book 2, p. 95. The 
latter figure should have been applied to the reproduction cost new. 

Further, the prices of materials used by Mr. Hill in calculating what it 
would cost to reproduce the properties of the company were the then exist- 
ing prices charged by the Western Electric Company to the telephone com- 
panies of the Bell system. Record Book 4, pages 320 and 321. These prices 
included price increases of about 9 per cent made by the Western Electric 
November 1, 1930, on goods manufactured by them. Record Book 4, p. 113. 
This increase has been criticised because made when prices generally were 
declining. In an Illinois Federal Court this increase was disapproved and 
the amount of it deducted. See Lindheimer vs. Illinois Bell Telephone Com- 
pany (1934) 54 Sup. Ct., 658, at 660. If this Commission were to follow the 
Illinois precedent 9 per cent could be deducted from prices of materials man- 
ufactured by the Western Electric Company for the purpose of determining 
what it would cost to reproduce the telephone company's plant. However, 
the company's witnesses urge that under the circumstances the Western 
Electric increases were justifiable. The Western Electric Company is a sub- 
sidiary of the American Telephone and Telegraph Company, as are the tele- 
phone companies of the Bell system, including the Southern Bell Telephone 
and Telegraph Company. The prices of the Western Electric to the Bell 
companies are fixed by cost of operation plus a reasonable profit. The prices 
of the Western Electric had been set in contemplation of a large demand 
from the Bell companies. By reason of the depression that demand failed, a 
contraction of Western Electric sales resulted, and the Western Electric was 
unable to continue the low prices which would have been possible on a large 
volume of business. One among many answers to this line of argument is 
that if the plant of the Southern Bell were to be reproduced new a great 
quantity of materials would be purchased from the Western Electric and 
the low prices said to be justified by a large demand would follow. 

We believe that a similar reason can be given for a general reduction of 
Mr. Hill's estimates of what it would cost to reproduce the Southern Bell 
plant new. Actual costs of construction in recent years were taken into ac- 
count by Mr. Hill. We are not satisfied that these actual costs were suffi- 
ciently reduced to embody the economies of large scale construction. If the 
whole plant were being reproduced many economies would be made by reason 
of the large scale operations, as compared with the small construction jobs of 
recent years. For example, machine digging of telephone post holes would 
replace much of the hand digging. If it be urged that this position is ar- 
tificial since no large reproduction is taking place, our answer is that cost 
of reproduction as a measure of value is artificial; it is a theoretical process 
applied to determine what a plant is now worth. The plant is not likely 
to be reproduced; we merely imagine that it were and calculate what the 
cost would be. The Commission insists on making the imaginary picture 
complete by taking into account the effect of such an operation on existing 
conditions, as well as the effect of existing conditions on such an operation. 
Present prices, for example, certainly affect what it would cost to reproduce 
a plant, but the reproduction of such a large plant as that of the Southern 
Bell in North Carolina would in turn affect prices of the Western Electric, if 
the reason for its price increases was falling off of volume of business. 



Decisions and Adjustments of Complaints 261 

Mr. Woodruff, assistant to the president of the company, testified that Mr. 
Hill took into account what the property appraised had cost the company. 
Record Book 3, page 248. If this be so, and not a mere inadvertent state- 
ment, error was committed, for cost of reproduction should take into account 
present prices, not cost. 

Mr. Hill's reproduction figures are based on the assumption that it would 
take four years to reproduce the company's North Carolina properties. Rec- 
ord Book 2, page 69. We think the time would be substantially less, which 
would result in reducing the calculated overhead. We believe that Mr. Hill 
added too much overhead to his labor and materials cost. For example, Hill 
Exhibit 17 shows that to the cost of labor and materials for the central of- 
fice building were added to 10 per cent contractor's profit and a 5 per cent 
architect's fee, plus charges for local superintendence and engineering and 
supervision. This looks like the charges which would have been incurred 
if the company had erected the building, have been supplemented by a con- 
tractor's profit, which would have been earned had an outside contractor 
erected the building. 

In view of the above objections to Mr. Hill's results, and in the light of 
the Commission's familiarity with the results of other appraisals of tele- 
phone property, that is to say, in the light of knowledge gained through its 
experience as a regulatory body, the Commission hereby finds that the cost 
of reproducing new the company's North Carolina intrastate properties as 
of December 31, 1933, less depreciation, would not be greater than $12,955,- 
087, which is the same as the investment in the properties adjusted to pres- 
ent prices and with allowance for depreciation. 

The Commission has also taken into account the fact that the tax valua- 
tion of all the company's property in the State is $11,250,000. Record Book 3, 
p. 338; Commission Exhibit 6. This figure includes property ascribable to 
interstate use, which is, as previously pointed out, slightly more than 10 per 
cent of the property. Deducting this 10 per cent leaves a tax value of $10,- 
125,000 for the intrastate North Carolina property. We are aware that 
value for tax purposes is not the same as value for rate purposes. Property 
is not ordinarily assessed for taxation at its full value. But although value 
for the purposes of taxation is not identical with value for rate purposes, 
the former is evidence which may properly be taken into account in deter- 
mining the latter. City of Lima vs. Public Utilities Comm., 106 Ohio St. 379, 
140 N, E, (1922); Re: Kokomo Gas and Fuel Co., P. U. R., (1921) E. 390, 
394 (Ind. Pub. Serv. Comm.); Re: Chesapeake & 0. Ry., P. U. R. (1917) D. 
152 (W. Va. Pub. Serv. Comm.); In re: Application of the So, Power Co., 
N. C. Corp. Comm. Rep. (1921-22), Part 1, 45. But see Corp. Comm. vs. 
Cannon Mfg. Co., 185 N. C, 17, at 30; 116 S. E. 178 (1923). One court has 
regarded value for taxation and value for rate purposes as identical. See 
Great Falls Gas Co. vs. Pub. Serv. Comm., 34 F (2d) 297 (D. Mont, 1929) 
It is true that in Knott vs. Chicago, B. & Q. R. R. (Missouri Rate Cases), 230 
U. S. 474, 33 Sup. Ct. 975, 57 L. ed. 1571 (1913) the Supreme Court refused 
to accept tax value as the basis for a rate decision, but there the railroads 
were attacking maximum rates set by statute, and their sole evidence of value 
on which to found the argument that the rates were confiscatory was tax 
value. 



262 'N. C. Utilities Commission 

No one knows exactly what the fair value of the properties of a large 
utility is. Nice calculations down to odd dollars and cents appear to us ab- 
surd, in view of divergencies in results between different calculators and 
methods of calculation. We introduce the above figures only as support 
for our ultimate judgement as to value. 

Pursuant to the direction of Smyth vs. Ames, 169 U. S. 466, 18 Sup. Ct. 418, 
42 L. ed. 819 (1898) and N. C. Code Ann. (Michie, 1931) Section 1068, we have 
considered the relevant factors having a bearing on the value of the com- 
pany's property, and have concluded that the fair present value is not in 
excess of $13,000,000. 

According to the company's evidence contained in Duncan Exhibit 9, the 
intrastate operating costs of the company in 1933 were $3,168,327.27. These 
costs, however, include a charge for depreciation of $753,989,16. Of course, 
a reasonable charge for depreciation may properly be included in the sums 
collected from the public in the form of rates. The company's charge in 
1933 was 4.44 per cent of the investment in its depreciable property. Duncan 
Exhibit 31. But examination of Duncan Exhibit 29 convinces us that the 
property of the company has an average of at least six years. The company's 
depreciation reserve is 20 per cent. Here is an inconsistency. If 4.44 per 
cent is a reasonable depreciation charge, then in six years the depreciation on 
the property would be 26.64 per cent. Either the company's property has 
depreciated 26.64 per cent, or its depreciation charge is excessive. We must 
cut down the value of the company's property by a 26.64 per cent deprecia- 
tion instead of a 20 per cent depreciation or we must cut the depreciation 
charge. We accept the testimony of the company that the existing depre- 
ciation is only 20 per cent, or the amount in the reserve. Record Book 2, p. 
95. Twenty per cent can be accumulated in six years by a charge of 3.33 
per cent. For the purpose of determining reasonable rates we take into 
account that charge. This does not mean that we are prescribing what the 
company must charge for depreciation. We merely hold that either the prop- 
erty is depreciated more than 20 per cent, or 3.33 per cent is a reasonable 
depreciation charge. Either alternative justifies setting lower rates than 
could be set if we were to follow the company in making an annual depre- 
ciation charge which would produce more than the company admits the 
property has depreciated. 

Moreover, the company applied its annual depreciation charge to the wrong 
base. According to the opinion of the Supreme Court in United Rys. & Elec. 
Co. vs. West, 280 U. S. 234, 50 Sup. Ct. 123, 74 L. ed. 390 (1930) the deprecia- 
tion base as well as the rate base is the present fair value of the company's 
property. We found the present fair value of the intrastate property to be 
$13,000,000. This, however, includes some property not depreciable. Com- 
parison of Duncan Exhibit 31, showing in the right-hand column investment 
in depreciable property, 1933, with Duncan Exhibit 3, showing total invest- 
ment, reveals that about 8.37 per cent of the property is non-depreciable. 
Deducting 8.37 per cent from $13,000,000 leaves $11,911,900; 3.33 per cent of 
this sum is $396,666 annual depreciation allowance. The charge made by 
the company, as above pointed out, is $753,989, an excess of $357,323. De- 
ducting this sum from the company's operating costs for 1933 shown on Dun- 
can Exhibit 9, leaves operating costs in the sum of $2,811,004. 



Decisions and Adjustments of Complaints 263 

The Commission is of the opinion that a reduction of 15 per cent in all 
the rates which go to produce exchange service revenues could be supported 
under the law. This conclusion can be demonstrated as follows: 

The exchange service revenues in 1933 were $2,669,466. The total intra- 
state revenues are $4,025,506. Duncan Exhibit 9. Fifteen per cent of $2,- 
669,466 is $400,419. The 15 per cent reductions in exchange revenues would 
therefore reduce total revenues by $400,419, or to the sum of $3,625,087. De- 
ducting from revenues the $2,811,004 operating costs as adjusted by the 
commission leaves a net operating revenue of $814,083. This is a return of 
6.26 per cent on the fair value of the company's property. 

The Commission believes that 6.26 per cent is an adequate return on the 
fair value of the company's property. It is more than the cost of money to 
the company on its bonds, which is 5.49 per cent. Record Book 2, pp. 34 
and 35. A return of 7 per cent has been recently approved by the Supreme 
Court in businesses where the risk is greater than in the telephone business, 
and where the rate of return should therefore be greater. Los Angeles Gas 
& Elec. Corp. vs. R. R. Comm., 289 U. S. 287, 53 Sup. Ct. 637, 77 L. ed. 1180 
(1933) (gas); Clark's Perry Bridge Co. vs. Pub. Serv. Comm., 54 Sup. Ct. 
427 (1934) (toll bridge rates). The same return, 7 per cent, to an electric 
corporation has been approved. Wabash Valley Elec. Co. vs. Young, 287 U. 
S. 488, 53 Sup. Ct. 234, 77 L. ed. 447 (1933). What constitutes a reasonable 
return varies with the times. Los Angeles oeas & Elec, Corp. vs. R. R. Comm. 
supra. A lower rate of return than would have been reasonable some years 
ago is reasonable today. See Robinson, Duty of a Public Utility to Save at 
Reasonable Rates (1928) 6 N. C. L. Rev. 243, at 279. 

Even conceding that 6.26 per cent is an inadequate return, we still hold 
that rates which would have produced that return or even less in 1933 would 
be reasonable for coming years. The Commission is not fixing rates for the 
past, but for the future. It is not our task to prescribe rates which would 
have produced for the company a fair return in 1933. Our duty is to deter- 
mine what rates will enable the company to earn a fair return during the 
years just ahead, when the prescribed rates will be in operation. It is true 
that the foundation for a prediction as to the future is a thorough examina- 
tion of present conditions. This we have made. We believe that there are 
some definite facts which support our conclusion that so far as reasonable 
judgment can foresee the 15 per cent reductions above referred to would 
still enable the company to earn a fair return on the fair value of its prop- 
erty in the immediate future if not in 1933. 

In the fist place during the year 1933 and the depression years just preced- 
ing it the income of the company was abnormally low due to loss of busi- 
ness. Hill Exhibit 19, Chart 2, figure 2, shows that between 1929 and 1933 
the number of telephones operated by the company throughout its whole 
territory decreased almost 20 per cent. This means that with improved 
business conditions, already becoming apparent, the company will be able 
to increase the number of customers served to the extent of this 20 per cent 
without any very substantial expense for expanding its plant, since the plant 
is capable of serving, and in fact once served, this greater number of sub- 
scribers. Hence there is the immediate prospect of a material gain in reve- 
nue without a corresponding expense for plant. The company's witness, its 
treasurer and vice-president, George J. Yundt, testified that in the next few 



264 I'n'. C. Utilities Commission 

years the company's business would grow to the point where it would need 
new capital for expansion. Record Book 3, p. 307. If this be true, certainly 
the business will expand to fill up the existing surplus plant capacity caused 
by loss of customers. 

We have borne in mind the fact that increased volume of business in the 
country may be accompanied by rises in prices, which will result in an in- 
crease in the fair value of the company's property on which a return is to be 
earned and an increase in operating expenses. However, we are of the opin- 
ion that the increased income thus made necessary will be far more than 
offset by expanding revenues as above outlined. 

Furthermore, rate reductions normally result in expanded business which 
to some degree offsets the reductions. A reduction of 15 per cent in rates 
does not mean a 15 per cent reduction in revenues. In our judgment one of 
the reasons why the company's volume of business has suffered is because 
it has maintained its rates to the public at the pre-depression levels while 
other prices were falling. If it offers rates more in keeping with the cur- 
rent price level it may anticipate a better volume of business. It is true that 
the company has offered elaborate evidence to prove that rate reductions 
recently made in Georgia resulted in no gain in business traceable to the 
reductions. Record Book 3, pp. 186-192; Goodman exhibits 12 and 13. On its 
face exhibit 12 shows that the telephone stations in Georgia before the de- 
crease in rates were most of the time below the company average, and there- 
after were usually higher. The company endeavors to explain this result 
by arguing that it was due to agricultural prosperity in Georgia. Evidence 
was presented with regard to gains made during the same period by inde- 
pendent telephone companies which had not reduced rates. We think this 
evidence is at least inconclusive, and does not successfully contradict the 
normal experience of mankind that over a representative period of time 
more service can be sold at a low price than at a higher price for the same 
service. 

Our conclusion that the net income of the company will show gains in the 
immediate future is borne out by the fact that the experience of the com- 
pany for the first five months of 1934 has been more favorable than the 1933 
experience. The admitted per cent return to the company on total intrastate 
business calculated on various bases in each case has been higher during 
the first five months of 1934 than in 1933. That is, if the experience of the 
first five months continues throughout the year the company will have earned 
a larger per cent return than in 1933. Duncan Exhibits 34 and 36. This is 
true in spite of the fact that the NRA placed upon the company an unusual 
increase in operating expense. Record Book 3, p. 25. The witness Duncan 
denied that the net income for the first five months of 1934 was greater than 
for the first five months of 1933, but in the absence of any evidence that the 
telephone business has a seasonal peak during the first five months, the 
proper comparison is with the whole 1933 experience, since it is that expe- 
rience which the Commission as well as the company used as the central 
point for its calculations. Experience for the first five months of 1934 in- 
dicates future conditions growing more favorable than 1933 conditions. 

A further gain in net operating income would be shown by disallowing 
for rate purposes the price increase made by the Western Electric Company 
November 1, 1930. As already pointed out, this increase was disallowed in 



Decisions and Adjustments of Complaints 265 

one jurisdiction. We have already considered the increase in its relation to 
the value of the company's property. Supplies sold by the Western Electric 
also make up part of the operating expense, and a cut in the amount con- 
sidered for this expense would leave a larger net revenue. 

Another fact which supports our conclusion that the net intrastate rev- 
enues will be increased is that toll business has fallen off during the de- 
pression more than exchange business. Record Book 4, p. 276. Hence nor- 
mal business conditions will see a larger proportion of toll business done 
than was the case in 1933. Interstate business is toll business. Therefore 
normal conditions will see a larger proportion of interstate business with a 
greater proportion of the value of the company's property and a greater pro- 
portion of the operating expense properly chargeable to interstate use. See 
Duncan Exhibits 5 and 7. 

We call attention to the fact but we expressly do not rely upon it to sus- 
tain in any measure our result, that in our judgment a larger proportion of 
the value of the exchange properties of the company should be ascribed to 
toll operations, and as a consequence in part to interstate operations. See 
Record Book 4, pp. 270-273. The present basis for the separation is use of the 
properties for toll calls as compared with use for exchange calls. We be- 
lieve that the relative values of the exchange properties used for interstate 
toll service, and of the interstate toll properties, should also be taken into 
account. The exchange properties furnish terminal facilities for toll calls. 
These vast terminal facilities are available for the interstate toll business 
of the American Telephone and Telegraph Company, and make possible the 
long distance service to the desk of each subscriber; yet only a small por- 
tion of the value of the exchange facilities is ascribed to interstate opera- 
tions because the number of interstate calls is proportionately small. We 
think that the value of the exchanges to the interstate business should be 
given weight. One factor bearing on that value would be the value of the 
interstate toll plant as compared with the value of the exchange facilities 
made available to the toll plant. 

We have been impressed by the testimony of the company concerning the 
many technological improvements and attendant economies which have been 
introduced into the Bell system. When asked why these economies were 
not passed on to the public in the form of lower rates the company's wit- 
ness responded that the economies resulted in better service at the same 
rates. Record Book 3, p. 90. In our opinion the present service is adequate 
to the public needs, and the time has come when economies in operation 
should be reflected in rates. 

For these reasons the Commission, in the light of a careful review of the 
evidence and of its experience in the regulation of utilities, is of the opinion 
that the reduction above mentioned, namely, of 15 per cent in all the rates 
which go to produce exchange service revenues, would be legally valid. How- 
ever, the company has already made slight reductions which were in force 
during only the last three months of 1933. Had those reductions been in 
force for the entire year 1933, revenues would have been decreased an addi- 
tional $30,000 for the year. Moreover, the rates which go to produce ex- 
change service revenues include charges for private branch exchanges and 
pay stations, which charges the Commission has concluded not to reduce. 



266 



'N. C. Utilities Commission 



The Commission desires to take every precaution in order to make cer- 
tain that the reductions now ordered will not impair the healthy financial 
condition of the utility, on which its ability to render first-class service de- 
pends. Therefore, the Commission has chosen to confine its reductions to 
those rates named in the schedule hereinafter set forth, and to make the 
reductions less drastic than would have been legally supportable. The pre- 
scribed schedule of rates, taking into account the number of telephones in 
operation July 1, 1934, will reduce the operating revenues of the company 
$321,891.72 instead of the $400,419, less $30,000 existing reductions which as 
above demonstrated would have been legally valid, thus increasing the return 
to the company to 6.86 per cent. The average number of telephones in op- 
eration in 1933 was smaller than the number July 1, 1934, therefore, had 
this schedule been in force in 1933 it would have reduced 1933 revenues some- 
what less than $321,891.72. 

These reductions are made on the basis of the present operating costs re- 
ported by the company, save for the depreciation charge, and accordingly 
will not necessitate any reduction in such operating expenses as the wages 
of employees. 

The Commission has considered in fixing the rates in the various ex- 
changes special concessions exacted from the company by particular mu- 
nicipalities. We are of the opinion that when any municipality enjoys spe- 
cial advantages not enjoyed by other cities and towns, it is not entitled to 
rates as low as those for the other cities and towns. Its rates should be 
higher to the extent of the special advantage. For example, the company 
pays to the city of Asheville under its franchise one per cent on the gross 
exchange revenue in Asheville, and the Commission has taken this into con- 
sideration in fixing the Asheville rates. It is, therefore, 

Ordered, That the monthly telephone rental rates hereinafter appearing 
opposite each named exchange are hereby declared reasonable and the 
Southern Bell Telephone and Telegraph Company is hereby ordered to make 
these rates effective for all service rendered from and after January 1, 1935: 

RATES 



Exchange 



Class of 
Service 



Apex Business- 
Residence. 

Arden Business- 
Residence. 



Asheville Business... 

Residence. 

(1) Belmont Business... 

Residence. 



(2) Bessemer City Business... 

Residence. 

Black Mountain... Business- 
Residence. 



Blowing Rock Business- 
Residence. 



One 
Party 


Two 
Party 


Four 
Party 


Rural 


$3.00 
2.00 


$2.25 
1.75 


$2.00 
1.50 


$1.75 
1.50 


4.00 

2.50 


3.50 
2.25 


2.50 
1.50 


2.00 
1.50 


5.25 
3.00 


4.25 
2.50 


3.25 
1.75 


2.25 
1.75 


3.00 
2.25 


2.75 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.25 
2.25 


2.75 
2.00 


2.00 
1.50 


1.75 
1.50 


3.50 
2.50 


3.00 
2.00 


2.00 
1.50 


2.00 
1.50 



Decisions and Adjustments of Complaints 



267 



Exchange 



Class of 
Service 



Boone Business- 
Residence. 

Burlington Business... 

Residence. 



Canton Business... 

Residence. 

(3) Caroleen Business... 

Residence. 



Gary Business... 

Residence. 

Charlotte Business... 

Residence. 



(4) Cherryville Business... 

Residence. 

Cleveland Business- 
Residence. 

Davidson Business... 

Residence. 

Fairmont Business... 

Residence. 



(5) Forest City Business... 

Residence. 

Gastonia Business... 

Residence. 



Gibson Business... 

Residence. 

Goldsboro , Business... 

Residence. 



Greensboro Business... 

Residence. 

( 6 ) Grover Business.... 

Residence. 



Hamlet Business- 
Residence. 

Hendersonville Business.... 

Residence. 



(7) Kings Mountain Business... 

Residence. 

Laurinburg Business... 

Residence. 



Lenoir Business.... 

Residence. 

Lincolnton Business... 

Residence. 

Lumberton Business... 

Residence. 

(8) Maiden Business... 

Residence. 



One 

Party 


Two 
Party 


Four 
Party 


Rural 


3.00 
2.00 


2.50 
1.50 


2.00 


1.75 
1.50 


4.00 
2.50 


3.50 
2.00 


2.50 
1.50 


2.00 
1.50 


3.00 
2.25 


2.75 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.75 
2.00 


2.00 
1.50 


1.75 
1.50 


2.50 
2.00 


2.25 
1.75 


2.00 
1.50 


1.75 
1.50 


6.00 
3.00 


5.00 
2.50 


4.00 
1.75 


2.25 
1.75 


3.50 

2.25 


2.75 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


2.50 

2.00 


2.00 
1.75 


1.75 
1.50 


1.75 
1.50 


3.00 
2.00 


2.75 
1.75 


2.00 
1.50 


1.75 
1.50 


4.00 
2.50 


3.50 
2.00 


2.50 
1.50 


2.00 
1.50 


2.50 
2.00 


2.00 
1.75 


1.75 
1.50 


1.75 
1.50 


3.75 
2.25 


3.25 

2.00 


2.50 
1.50 


2.00 
1.50 


5.00 

2.75 


4.00 
2.25 


3.00 
1.50 


2.00 
1.50 


3.00 
2.00 


2.50 
1.75 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.75 
2.00 


2.00 
1.50 


1.75 

1.50 


3.50 

2.25 


3.00 
1.75 


2.25 
1.50 


2.00 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.75 

2.00 


2.00 
1.50 


1.75 
1.50 


3.50 

2.25 


3.00 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 

2.25 


2.75 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


2.00 
1.50 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


1.75 
1.50 



268 



I^. C. Utilities Commission 



Exchange 



Class of 
Service 



Morganton Business... 

Residence. 

) Mt. Holly Business... 

Residence. 



Mt. Olive Business... 

Residence. 

Murphy Business... 

Residence. 



Newland Business.... 

Residence.. 

(10) Newton Business.... 

Residence.. 

Raleigh Business.... 

Residence.. 

Reidsville Business.... 

Residence.. 

Rockingham Business.... 

Residence- 
Rowland Business.... 

Residence.. 

( 11 ) Rutherfordton Business.... 

Residence. 

Salisbury Business.... 

Residence. 



Selma Business... 

Residence. 

( 12 ) Shelby Business... 

Residence. 



Southport Business... 

Residence. 

Spruce Pine Business... 

Residence. 

( 13 ) Statesville Business- 

Residence. 

Stony Point Business... 

Residence. 

Taylorsville Business... 

Residence. 

(14) Troutman Business- 

Residence. 



( 15 ) Waco Business... 

Residence. 

Waynesville Business.. - 

Residence. 



Wendell— Business... 

Residence. 



(16) Wilmington Business... 

Residence. 



One 
Party 


Two 
Party 


Four 
Party 


Rural 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 

1.50 


3.00 
2.25 


2.50 
2.00 


2.00 

1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
1.75 


2.00 
1.50 


1.75 
1.50 


3.00 
2.00 


2.50 
1.75 


1.75 
1.50 


1.75 
1.50 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


1.75 
1.50 


5.00 

2.75 


4.00 
2.25 


3.00 
1.50 


2.00 
1.50 


3.50 
2.25 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


3.50 
2.25 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


3.00 
2.00 


2.50 
1.75 


2.00 
1.50 


1.75 

1.50 


3.00 
2.00 


2.75 
1.75 


2.00 
1.50 


1.75 
1.50 


4.50 
2.50 


3.50 
2.25 


3.00 
1.50 


2.00 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.50 
2.25 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


3.00 
2.00 


2.50 
1.75 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.50 
2.25 . 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


2.50 
2.00 


2.25 
1.50 


2.00 
1.00 


1.75 
1.50 


3.00 
2.25 


2.50 

2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.50 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


1.75 
1.50 


3.00 
2.25 


2.50 
2.00 


2.00 
1.50 


1.75 
1.50 


3.00 
2.00 


2.50 
1.75 


2.00 
1.50 


1.75 
1.50 


4.75 
2.75 


4.00 
2.25 


3.00 
1.50 


2.00 
1.50 



Decisions and Adjustments of Complaints 269 



T- T. Class of 

Winston-Salem Business.... 

Residence.. 

(17) Wrightsville Business 

Residence.. 

Zebulon Business 

Residence.. 



One 

Party 


Two 
Party 


Four 
Party 


Rural 


5.00 
2.75 


4.00 
2.25 


3.00 
1.50 


2.00 
1.50 


3.75 

2.50 


3.00 
2.00 


2.50 
1.50 


2.00 
1.50 


3.00 
2.00 


2.50 
1.75 


2.00 
1.50 


1.75 
1.50 



Note 

(1) Belmont — Unlimited service to Gastonia. 

(2) Bessemer City — Unlimited service to Gastonia and Kings Mountain. 
(8) Caroleen — ^Unlimited service to Forest City and Rutherfordton. 

(4) Cherryville — (Business subscribers only); unlimited service to Lin- 

colnton, Shelby and Waco. 

(5) Forest City — Unlimited service to Caroleen and Rutherfordton. 

(6) Grover — Unlimited service to Kings Mountain, Shelby and Blacksburg, 

S. C. (All subs, living in Cherokee County, S. C, unlimited service 
to Gaffney, S. C.) 

(7) Kings Mountain — (Business subscribers only); unlimited service to 

Shelby and Grover. 

(8) Maiden — Unlimited service to Lincolnton or Newton. 

(9) Mt. Holly — (Business subscribers only); unlimited service to Gastonia. 

(10) Newton — Unlimited service to Maiden. 

(11) Rutherfordton — Unlimited service to Caroleen and Forest City. 

(12) Shelby — (Business subscribers only); unlimited service to Grover, 

Kings Mountain and Waco. 

(13) Statesville — Unlimited service to Troutman. 

(14) Troutman — Unlimited service to Statesville. 

(15) Waco — Unlimited service to Cherryville and Shelby, 

(16) Wilmington — Unlimited service to Wrightsville. 

(17) Wrightsville — Unlimited service to Wilmington. 
Extensions, residental, all exchanges, 75 cents per month. 
Extensions, business, all exchanges, $1.25 per month. 

Handsets, 25 cents per month additional to above rates for a period of 18 
months; thereafter no extra charge; any subscriber who has already paid an 
extra charge for 18 months or more is hereby exempted from the payment 
of any further differential; where instrument has been installed for a period 
less than 18 months the subscriber shall pay the prescribed differential only 
until the 18 months' period is completed. 
Raleigh, N. C, December 12, 1934. 
By order of the Commission: 

Stanley Winborne, 
R. O. Self, Chief Clerk. Commissioner. 

F. W. Hanft, 

Associate Commissioner. 
F. L. Seeley, 
(Seal) Docket No. 88. Associate Commissioner. 



270 'N. C. Utilities Commission 

IN RE: SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY 
—TELEPHONE RATES IN ALL ITS EXCHANGES. 

Order Overruling Exceptions 

This cause coming again before the Utilities Commission, upon exceptions 
filed by the respondent, Southern Bell Telephone and Telegraph Company, to 
the former order of the Utilities Commission rendered in this cause on the 
twelfth day of December, 1934, and the Commission, having carefully con- 
sidered each of the 22 exceptions, together w^ith the appendices filed w^ith 
said exceptions, 

It is ordered. That each and all of said exceptions be and the same are 
hereby overruled. 

This 21st day of December, 1934. 

Stanley Winborne, 

Utilities Commissioner. 
Frank W. Hanft, 
Docket No. 88. Associate Commissioner. 

IN RE: SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY 
—TELEPHONE RATES IN ALL OP ITS EXCHANGES. 

Order Denying Petition for Stay Under Bond 

Now comes again respondent, Southern Bell Telephone and Telegraph 
Company, and suggests to the Utilities Commission that the respondent in- 
tends to appeal from the order of the Commission, rendered in the above 
entitled case on December 12, 1934, and petitions said Commission to enter 
an order postponing the effective date of said order of December 12, 1934, 
rendered in this cause, until such time as the question of the validity, or 
invalidity, of said order may be finally determined by the courts; and to 
fix a bond in an amount sufficient to assure to the patrons and subscribers 
of the respondent a refund of the difference in rates collected by the respond- 
ent between January 1, 1935, and the time when said case is finally con- 
cluded, in the event the rates prescribed in said order of December 12, 1934, 
are held valid by the courts. 

Upon a consideration of the petition and the matters and things prayed 
for therein, it is the opinion of the undersigned Commissioner that the rates 
set forth in the order of December 12, 1934, are fair and reasonable and 
that the effective date of said order should not be postponed; and further- 
more it is the opinion of the Commissioner that he is without legal author- 
ity to postpone the effective date of said order and fix and accept a super- 
sedeas bond as prayed for by the respondent. 

Wherefore, said petition is denied, both as a matter of law and discretion. 

This 22d day of December, 1934. 

Stanley Winborne, 

Docket No. 88. Utilities Commissioner. 



Decisions and Adjustments of Complaints 271 

Carolina Telephone and Telegraph Company to the Commission. Applica- 
tion for increase in capital stock. Authorized. 'Docket No. 22. 

Carolina Telephone and Telegraph Company to the Commission. Applica- 
tion for authority to discontinue toll line from switchboard of Vanceboro 
Telephone Company and make installation of toll station. Approved. Docket 
No. 415. 

Carolina Telephone and Telegraph Company to the Commission. Applica- 
tion for authority to discontinue operation of Beulaville. Approved, Docket 
No. 555. 

Carolina Telephone and Telegraph Company to the Commission. Applica- 
tion for authority to discontinue magneto service at Pikesville, subscribers 
to be served by multi-party service from automatic equipment at Fremont. 
Approved. Docket No. 728. 

Carolina Telephone and Telegraph Company to the Commission. Revision 
of exchange rates and multi-party rates filed and approved. Docket No. 739. 

Carolina Telephone and Telegraph Company. Citizens of Lowlands. Ap- 
plication for extension of service. Adjusted. Docket No. 380. 

Carolina Telephone and Telegraph Company. Complaint by C. V. Ross of 
discontinuance of toll between Aurora and Washington. Dismissed. Docket 
No. 428. 

Carolina Telephone and Telegraph Company. Complaint by the Town of 
Bailey of service rendered. Adjusted. Docket No. 491. 

Carolina Telephone and Telegraph Company. Complaint by W. E. Hooks 
of unauthorized use of telephone for long distance service. Dismissed. 
Docket No. 525. 

Carolina Telephone and Telegraph Company. Complaint by C. A. Vinson 
of Woodland of increased rates. Dismissed. Docket No. 734. 

Carolina Telephone and Telegraph Company. Complaint by W. H. Pridgen 
of Macon of increase in phone rates. Dismissed. Docket No. 738. 

Carolina Telephone and Telegraph Company. Application by R. B. Watson 
of Aulander for telephone service to Logging Camp on Highway No. 30. Dis- 
missed. Docket No. 774. 

Carolina Telephone and Telegraph Company. Complaint by Junius D. 
Grimes of service in Grimesland. Adjusted. Docket No. 778. 

Carolina Telephone and Telegraph Company, Complaint by Dr. Ira M. 
Hardy of increase in rates. Adjusted. Docket No. 800. 

Carolina Telephone and Telegraph Company. Complaint by Mrs. Danford 
Taylor of Washington of increase in charge of service. Adjusted. Docket 
No. 829. 

Carolina Utilities Company. Complaint by citizens of Yanceyville as to 
concessions to old electric light customers who had paid for construction of 
lines during previous ownership. Dismissed. Docket No. 420. 

Central Carolina Electric and Telephone Company to the Commission. 
General Exchange Tariff changed to apply to new company, and applicable 



272 ]^. C. Utilities Commission 

to following exchanges: Asheboro, Candor, Creedmoor, Dobson, Eagle 
Springs, Leaksville, Mount Airy, Mount Gilead, North Wilkesboro, Pilot 
Mountain, Rural Hall, Troy and West Jefferson. Filed and approved. Docket 
No. 777. 

Central Carolina Electric and Telephone Company to the Commission. Rates 
for Dobson, Pilot Mountain, Rural Hall and Yadkinville filed and approved. 
Docket No. 860. 

Central Carolina Electric and Telephone Company to the Commission. 
Service connection charges filed and approved. Docket No. 872. 

Central Carolina Electric and Telephone Company. Complaint of service 
by the citizens of Wingate and vicinity. Adjusted. Docket No. 281. 

Durham Telephone Company to the Commission. Revision of Sheet I 
with reference to information as to service filed and approved. Docket No. 
379. 

Durham Telephone Company to the Commission. Rates filed and ap- 
proved. Docket No. 768. 

D. L. M. Fields vs. S. M. White. Complaint of telephone service. Ad- 
justed. Docket No. 252. 

W. H. Heins to the Commission. Application for certificate of convenience 
and necessity to construct and maintain automatic telephone exchange at 
Broadway, serving Broadway and surrounding territory. Granted and rates 
filed and approved. Docket No. 363. 

Hickory Telephone Company to the Commission. Rates filed and ap- 
proved. Docket No. 772. 

Leach Telephone Company to the Commission. Discontinuance of opera- 
tion at Biscoe. Approved if no objection filed. Docket No. 348. 

Mebane Home Telephone and Telegraph Company. Complaint of service 
filed by W. S. Harris. Adjusted. Docket No. 735. 

Norfolk and Carolina Telephone and Telegraph Company. Complaint of 
service filed by W. 0. Crump of Sunbury. Adjusted. Docket No. 803. 

North Carolina Independent Telephone Association to the Commission. 
Reduced intrastate toll telephone rates filed by the following companies: 
Carolina Telephone and Telegraph Company, Central Carolina Telephone 
Company, Lexington Telephone Company and North State Telephone Com- 
pany. Approved. Docket No. 658. 

North Carolina Independent Telephone Association to the Commission. 
Amendment of tariff with reference to monophones filed by the following 
companies: Central Carolina Telephone Company, Concord Telephone Com- 
pany, Heins Telephone Company, Lee Telephone Company, Lexington Tele- 
phone Company, Madison Telephone Company, Monroe Telephone Company, 
Mooresville Telephone Company, Norfolk and Carolina Telephone and Tele- 
graph Company, North State Telephone Company, Southern Appalachian 
Telephone Company, Weaverville Electric and Telephone Company, Western 
Carolina Telephone Company. Approved. Docket No. 798. 

North State Telephone Company to the Commission. Application for au- 
thority to increase its capital stock. Granted. Docket No. 190. 



Decisions and Adjustments of Complaints 273 

North State Telephone Company to the Commission. Application for au- 
thority to convert Thomasville rural phones to automatic operation. Ap- 
proved. Docket No. 574. 

North State Telephone Company to the Commission. Asking for ruling 
of Commission on refusal to construct line from Thomasville to High Point 
for Thomasville Chair Company. Approved. Docket No. 659. 

North State Telephone Company. Complaint with reference to deposit to 
guarantee payment of toll charges on telephone when installed. Adjusted. 
Docket No. 711. 

Polk County Telephone Company. Complaint of increase in rates to sub- 
scribers outside Town of Tryon. Adjusted. Docket No. 307. 

South East Public Service Company. Complaint of service by John W. 
Clark, Franklinville. Adjusted. Docket No. 388. 

South East Public Service Company. Complaint of toll rates at Yadkin- 
ville. Dismissed. Docket No. 684. 

Southern Bell Telephone and Telegraph Company to the Commission. 
Teletypewriter exchange service rates and regulations for supplemental 
service and facilities. Filed and approved. Docket No. 262. 

Southern Bell Telephone and Telegraph Company to the Commission. Re- 
vision in toll telephone tariffs (night rates). Filed and approved. Docket 
No. 394. 

Southern Bell Telephone and Telegraph Company to the Commission. Toll 
terminals — rates filed and approved. Docket No. 441. 

Southern Bell Telephone and Telegraph Company to the Commission. Sea- 
son rates for Blowing Rock filed and approved. Docket No. 457. 

Southern Bell Telephone and Telegraph Company to the Commission. Con- 
struction and installation charges filed and approved. Docket No. 473. 

Southern Bell Telephone and Telegraph Company to the Commission. 
Schedule of rates for intrastate toll telephone service within State of North 
Carolina. Approved. Docket No. 638. 

Southern Bell Telephone and Telegraph Company to the Commission. 
Teletypewriter exchange service. Approved. Docket No. 694. 

Southern Bell Telephone and Telegraph Company to the Commission. 
Farmers' Line Service General Tariff. Approved. Docket No. 577. 

Southern Bell Telephone and Telegraph Company to the Commission. Dis- 
continuance of toll station at Gerton. Approved. Docket No. 752. 

Southern Bell Telephone and Telegraph Company to the Commission. Dis- 
continuance of toll station of Cole Hardware Company at Pembroke. Ap- 
proved. Docket No. 864. 

Southern Bell Telephone and Telegraph Company. Application for addi- 
tional telephone service by Citizens of Bahama and Durham County. Dis- 
missed. Docket No, 156. 

Southern Bell Telephone and Telegraph Company. Complaint by W. H. 
Banck with reference to listing name in directory. Adjusted. Docket No. 
2591/2. 

Southern Bell Telephone and Telegraph Company. Complaint by Herbert 
W. Hewlett of overcharge in rates. Dismissed. Docket No. 270. 



274 jN". C. Utilities Commission 

Southern Bell Telephone and Telegraph Company. Complaint by Richard- 
son Realty, Inc., of rental charge for equipment. Dismissed. Docket No. 
371. 

Southern Bell Telephone and Telegraph Company. Complaint by Dr. H. 
K. Foster of rate for service. Adjusted. Docket No. 375. 

Southern Bell Telephone and Telegraph Company. Complaint of discon- 
tinuance of office at Graphiteville. Commission approves discontinuance. 
Dismissed. Docket No. 384. 

Southern Bell Telephone and Telegraph Company. Complaint by Tom J. 
Moss of service between Rutherfordton and Forest City. Adjusted. Docket 
No. 387. 

Southern Bell Telephone and Telegraph Company. Application by E. A. 
Hilker for service on Sardis Road. Dismissed. Docket No. 405. 

Southern Bell Telephone and Telegraph Company. Complaint by Ashe- 
ville and Charlotte Hotels of discrimination in charge for outgoing local 
calls. Adjusted. Docket No. 440. 

Southern Bell Telephone and Telegraph Company. Application by W. W. 
Glenn of Lincolnton for unlimited service from Lincolnton to Cherryville 
for business phones only. Dismissed. Docket No. 444. 

Southern Bell Telephone and Telegraph Company, Complaint by A. W. 
Titman of discontinuance of service. Dismissed, Docket No. 465. 

Southern Bell Telephone and Telegraph Company. Complaint by National 
Packing Company of advance charges. Dismissed. Docket No, 608. 

Southern Bell Telephone and Telegraph Company. Complaint by Joe 
Bernstein of charges. Dismissed. Docket No. 505. 

Southern Bell Telephone and Telegraph Company. Complaint by Mon- 
damin-Tawasentha Camps of long distance service. Adjusted. Docket No. 
769. 

Southern Bell Telephone and Telegraph Company. Complaint by George 
A. Gash of refusal to install telephone. Dismissed. Docket No. 787. 

Southern Bell Telephone and Telegraph Company. Complaint by H. C. 
Clark of Asheville of service. Dismissed. Docket No. 804. 

Southern Bell Telephone and Telegraph Company. Application by H. L. 
Sprinkle of Gary for installation of telephone. Adjusted. Docket No. 813. 

Southern Bell Telephone and Telegraph Company, Complaint by L, A. 
Vest of charge for telephone service. Adjusted. Docket No. 828. 

Southern Bell Telephone and Telegraph Company. Complaint by M. G. 
Flanigan of Graham of rates. Dismissed. Docket No. 830. 

Southern Bell Telephone and Telegraph Company. Discontinuance of toll 
station at Lowe. Approved, Docket No. 899. 

Southern Bell Telephone and Telegraph Company. Reduced rates for 
Christmas and New Year's Day filed. Approved. Docket No. 906. 



CiRCIJLARS 275 

CIRCULARS 

Supplement No. 1 to Circular No. 344 

(Cancels Circular No. 344) 

MAXIMUM FREIGHT RATES 
on 

Bagging, used, cotton bale covering, hemp or jute; and cotton baling ties 
or buckles, used, iron or steel, in straight or mixed C. L., minimum weight 
24,000 pounds, subject to Rule 34 of Southern Classification. 

Cancel. Apply class rates. 

By order of the Commission: 

Issued November 20, 1934. R. 0. Self, 

Effective December 10, 1934. Chief Clerk. 

(File 163). 

Supplement No. 3 to Cii'cular No. 334 

(Cancels Supplement No. 2) 

MAXIMUM FREIGHT RATES 
on 
Clay, concrete, earthen or shale products, as described in original circular 
is hereby amended to read: 

CONCRETE PRODUCTS, Viz: 

Flue lining, carload, minimum weight, 30,000 pounds. 

Flue pipe, flue tops, or chimney caps, straight or mixed carloads, minimum 
weight, 26,000 pounds. 

Pipe, sewer or culvert, and fittings, straight or mixed carloads, minimum 
weight, 26,000 pounds. 

Wall coping, carload, minimum weight, 26,000 pounds. 

Thimbles, chimney or stove pipe, carload, minimum weight, 26,000 pounds. 

Tile, drain, carload, minimum weight, 26,000 pounds. 

Rates on clay, earthen or shale products, cancelled in accordance with 
findings of the Interstate Commerce Commission in I. C. C. Docket No. 21377. 

By order of the Commission: 

Issued February 26, 1935. R. 0. Self, 

Effective March 20, 1935. Chief Clerk. 

Supplement No. 3 to Circular No. 331 

MAXIMUM FREIGHT RATES 
on 
SPECIAL IRON AND STEEL ARTICLES, 
Carload and less than carload. 
(Described in original circular and Supplements Nos. 1 and 2) 
Cancel all carload rates. Apply rates published in Agent F. L. Speiden's 
Southern Iron Tariff, I. C. C. No. 1846, and/or reissues. 
By order of the Commission: 

Issued November 3, 1934. R. 0. Self, 

Effective November 23, 1934. Chief Clerk. 

(Docket No. 236). 



276 ^N". C. Utilities Commission 

Supplement No. 4 to Circular No. 331 

(Cancels Supplement No. 3) 

MINIMUM FREIGHT RATES 

on 

SPECIAL IRON AND STEEL ARTICLES 

Less than carload 

(As described in original circular and Supplement No. 2 thereto). 

(3) Cancel all carload rates. Apply rates published in Agent F. L. Spei- 

den's Southern Iron Tariff, I. C. C. No. 1846, and/or reissues. 

Cancel rates on the following commodities shown in original circular on 
pages indicated: 

Page No. 2: Billets, other than copper clad, blooms or ingots (See Note); 

also note in connection therewith. 
Page No. 4: Furnace Salamanders or ladle skulls, loose or in packages. 
Page No. 5: Slabs, in the rough (see Note), loose or in packages; also note 

in connection therewith. 
Page No. 5: Wire rods, or chain iron or steel (see Note), in coils; also note 

in connection therewith. 
Page No. 2: Bars, muck or puddle, loose or in packages; bars, sheet or tin 
plate, loose or in packages. 
Apply class rates. 

(3) Reissued from Supplement No. 3, effective November 23, 1934. 
By order of the Commission: 

Issued November 20, 1936. R. 0. Sexf, 

Effective December 10, 1936. Chief Clerk. 

Supplement No. 1 to Circular No. 296 

MAXIMUM FREIGHT RATES 
on 
Marl and green sand, carload minimum weight, 60,000 pounds. In cents 
per net ton of 2,000 pounds. 

Refer to Circular No. 296 and cancel rates on loam soil, carloads. 
By order of the Commission: 

Issued August 11, 1936. R. 0. Self, 

Effective August 31, 1936. Chief ClerJc. 

(Docket No. 755). 

Supplement No. 2 to Circular No. 291 

MAXIMUM FREIGHT RATES 
on 
Oyster shells, ground (not including oyster shell dust), carload minimum 
weight, 60,000 pounds, per ton of 2,000 pounds. 

Change in description only, excluding oyster shell dust. 

By order of the Commission: 

Issued July 29, 1935. R. O. Self, 

Effective August 20, 1935. Chief Clerk. 

(Docket No. 448). 



Circulars 277 

Supplement No. 1 to Circular No. 309 

MAXIMUM FREIGHT RATES ON NAVAL STORES, Viz. 

Pitch (other than coal, petroleum or hardwood) in barrels or casks, car- 
load, minimum weight, 40,000 pounds. 

Rosin and rosin dross, in barrels, carload, minimum weight, 36,000 pounds. 

Tar, pine, carload minimum weight 40000 pounds. 

Rates on commodities described in original circular and not brought for- 
ward are cancelled. 

By order of the Commission: 

Issued July 10, 1935. R. 0. Self, 

Effective August 1, 1935. Chief Clerk. 

(Docket No. 411). 

Supplement No. 2 to Circular No. 315 

(Cancels Circular No. 315) 

MAXIMUM FREIGHT RATES 
on 

Plaster, wall and/or stucco plaster, cement or calcined (including plaster 
of paris), in barrels or cloth bags, straight or mixed carloads, minimum 
weight, 40,000 pounds. 

Circular No. 315 is hereby cancelled. 

By order of the Commission: 

Issued July 10, 1935. R. O. Self, 

Effective August 1, 1935. Chief Clerk. 

(Docket No. 429). 

Supplement No. 1 to Circular No. 329 

MAXIMUM FREIGHT RATES 
on 

Rails and railway track material, C. L. and L. C. L., viz: Rails, railway 
track, loose; and railway track material, loose or in packages as provided 
for in Southern Classification, straight or mixed carload, minimum weight, 
45,000 pounds. 

Note: Rates on rails, railway track, per ton of 2,240 pounds, will be the 
same as for 2,000 pounds. 

Refer to Circular No. 329 and cancel carload rates. Less than carload 
rates continue to apply. 

By order of the Commission: 

Issued May 23, 1935. R. 0. Self, 

Effective June 15, 1935. Chief Clerk. 

(Docket No. 386). 



278 ]^. C. Utilities Commission 

Supplement No. 2 to Circular No. 329 

(Cancels Circular No. 329) 

MAXIMUM FREIGHT RATES 
on 

Rails and railway track material, L. C. L., viz: Rails, railway track, loose, 
and railway track material, loose or in packages as provided for in Southern 
Classification. 

Refer to Circular No. 329 and cancel less than carload rates. This com- 
pletes the cancellation of Circular No. 329. 

By order of the Commission: 

Issued October 10, 1936. R. 0. Self, 

Effective November 1, 1936. i Ghief Clerk. 

(Docket No. 386). 

Supplement No. 2 to Circular No. 302 

(Cancels Circular No. 302) 

MAXIMUM FREIGHT RATES 
on 
Salt, common (sodium chloride), in blocks, or in bulk, carload minimum 
weight, 45,000 pounds. 

Circular No. 302 is hereby cancelled. 

By order of the Commission: 

Issued July 2, 1935. R. O. Self, 

Effective July 20, 1935. Chief Clerk. 

(Docket No. 416). 

Supplement No. 1 to Circular No. 305 

Amend description to read: 

MAXIMUM FREIGHT RATES 
on 
Tobacco, manufactured, viz: Cigarettes, tobacco, with paper wrapers, with 
or without cigarette papers, in boxes, (see Note 1), L. C. L. 

Tobacco, smoking, with or without cigarette papers, also with or without 
pipes, (common clay, corn cob and/or combination cork and clay bowl pipes), 
(see Note 2), L. C. L. 

Note 1: When moving on the same bill of lading, cigarette papers 
may be included with shipments consisting of or including cigarettes, 
whether packed in the same or different containers, the weight of the 
cigarette papers to be limited to not exceed 10 per cent of the total weight 
of the cigarettes included in the entire shipment. 
' Note 2: When moving on the same bill of lading, cigarette papers 

and/or pipes may be included with shipments consisting of or including 
smoking tobacco, whether packed in the same or different containers, 



Circulars 279 

the weight of the cigarette papers and/or pipes to be limited to not ex- 
ceed 10 per cent of the total weight of the smoking tobacco included in 
the entire shipment. 
By order of the Commission: 

Issued September 4, 1935: R. 0. Self, 

(Docket No. 510). Chief Clerk. 

Supplement No. 4 to Circular No. 339 

(Cancels Supplement No. 3) 
GENERAL RULES GOVERNING NORTH CAROLINA INTRASTATE 

TRAFFIC 

Amend Rule 1 of Circular No. 339 to read: 

Rule 1: Rates to intermediate intrastate destinations or from intermedi- 
ate intrastate origins not to exceed rates from or to more distant interstate 
origins or destinations. 

In applying rates from points of origin in North Carolina to destina- 
tions within the State, on intrastate traffic, rates shall in no case exceed 
commodity rates on like traffic from or to more distant interstate points 
from or to which there are published through commodity rates and from or 
to which the intrastate origin or destination is directly intermediate via 
the rate making line or lines from or to the more distant interstate points. 

By order of the Commission: 

Issued February 12, 1935. R. 0. Self, 

Effective March 1, 1935. Chief Clerk. 

(Docket No. 55). 

Circular No. 359 

RULE GOVERNING SWITCHING AT GRADE CROSSING WITHIN 
MUNICIPALITIES IN NORTH CAROLINA 

Rolling stock not to he backed over unprotected crossing unless precec^etZ 
hy flagman. No railroad, nor any of its agents or employees, shall push or 
back any train, locomotive, car, or other rolling stock over any grade cross- 
ing within any municipality and/or switching limits of any city or town in 
the State of North Carolina, whether incorporated or not, which is unpro- 
tected at the time by a crossing watchman or flagman on duty, or automatic 
signal or gates, unless it be preceded in the day time by a flagman on foot 
carrying a flag, ^nd in the night time by a flagman on foot carrying a 
lighted lantern; and it shall be the duty of the railroad and of every such 
flagman to give timely warning to pedestrians, and persons in vehicles of 
the approaching rolling stock. 

By order of the Commission: R. 0. Self, 

Issued July 25, 1935. Chief Clerk. 

Supplement No. 1 to Circular No. 359 

(Cancels Circular No. 359) 

Circular No. 359, containing rule governing switching at grade crossings 
within municipalities in North Carolina, is hereby cancelled. 
By order of the Commission: 

Issued September 12, 1935. R. 0. Self, 

Chief Clerk. 



280 



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RAILWAYS 



Railroad 



Road Owned 



Entire 



N. C. 



Road Operated 



Entire N. C 



Cost of Road 



Entire 



N. C. 



Atlantic Coast Line 

Atlantic and Yadkin 

Clinchfield 

Carolina, Clinchfield & Ohio 

Carolina & N. W 

Norfolk Southern 

Atlantic & N. C 

Durham & S. C 

Norfolk & Western 

Seaboard Air Line 

Southern 

Southern Subsidiaries: 

Asheville & Craggy Mtn 

Asheville Southern 

Atlanta & Charlotte A. L 

Atlantic & Danville 

Car. & Tenn. Sou 

Danville & Western 

High Pt., Rand. Ash. & Sou... 

North Carolina 

North and South Carolina 

North Carolina Midland 

Southern Ry. — Carolina Div... 

State University 

Tallulah Falls 

Yadkin 

Winston-Salem Southbound 

Miscellaneous Roads: 

Aberdeen & Rockfish 

Appalachian 

Atlantic & Carolina 

Atlantic & Western 

Black Mountain 

Cape Fear Railways 

Carolina Southern 

Cliffside 

Durham & Southern 

East Carolina 

East Tenn. & Western N. C — 

Graham County 

High Pt., Thomasville & D.... 

Laurinburg & Southern 

Lawndale Ry. & Industrial Co. 

Linville River 

Louisville & Nashville 

Maxton, Alma & Southbound. 

Moore Central 

Piedmont & Northern 

Rockingham 

Tennessee & North Carolina. .. 
Tuckaseegee & Southeastern... 

Virginia & Carolina Sou 

Warrenton 

Washington & Vandemere 

Wilmington, Brunswick & Sou. 

Totals 



4,820.82 
163.10 

266.36 
124.34 
798.22 
95.82 
38 

2,132.04 
3,320.11 
4,109.64 

2.47 
2.27 

255.44 

277.71 
13.96 
76.90 
26.85 

224. 12 
4.79 
53.50 

690.28 
10.15 
57.10 
40.52 
87.70 

44 
11.00 

9.52 
24.00 
12.83 

5.00 
21.55 

7.07 
5,6.87 
26.90 
36.18 
12.13 
33.78 
27.63 

9.28 
34.79 
4,300.00 
15.07 
10.11 
161.14 
22.02 
46.00 
12.18 
52.96 

3.00 
39.59 
30.20 



1,009.87 

163.10 



117.40 

87.34 

679.18 

95.82 

38.08 

111.33 

627.35 

590.84 

2.47 

2.27 
42.64 
22.15 
13.96 

8.96 

26.85 

224.12 

4.79 
53.50 
106.68 
10.15 
14.00 
40.52 
87.70 

44.90 
11.00 

9.52 
24.00 
12.83 

5.00 
21.55 

7.07 
56.87 
26.90 

3.18 
12.13 
33.78 
27.63 

9.28 
34.79 
13.19 
15.07 
10.11 
41.67 
22.02 
25.84 
12.18 
52.96 

3.00 
39.59 
30.20 



,756.98 



4,767.33 



5,147.77 
163.10 
309.29 

133.54 
932.20 



2,185.96 
4,307.99 
6,644.14 

4.74 







13.96 

81.89 

26.85 









10.15 

57.10 

52.69 

98.19 

44. 
11.00 

9.52 
24.00 
12.83 
10.00 
21.55 

7.07 
58.97 
26.90 
36.18 
12.13 
33.78 
28.13 
11.05 
34.79 
5,051.43 
15.07 
10.11 
176.67 
22.02 
78.35 
12.18 
52.96 

3.00 



30.20 



1,058.12 

163.10 

117.40 



96.54 

818.21 





112.23 

629.87 

1,201.17 

4.74 







13.96 

8.96 

26.85 









10.15 

14.00 

52.69 

98.19 

44.90 
11.00 
10.52 
24.00 
12.83 
10.00 
21.55 

7.07 
58.97 
26.90 

3.18 
12.13 
33.78 
28.13 
11.05 
34.79 
13.19 
15.07 
10.11 
47.26 
22.02 
26.84 
12.18 
52.96 

3.00 



30.20 



f 194,389,131. 
2,380,257. 

50,095,004. 

3,889,594. 

27,483,177. 

1,760,519. 

*847,145. 

323,403,493. 

185,895,576. 

374,051,449. 



20 



72 



$40,721, 
2,380, 

22,076, 
2,732, 

23,382, 
1,760, 
*847, 

16,881, 
3,511, 
5,375, 



*44 

53 

21,700 

7,610 

577 

*2,156 

684 

4,944 

50 

1,722 

14,909 

80 

1,577 

1,373 

5,978 

*443 
*167 

*70 
*153 
*230 

*63 

*204 

*152 

1,663 

415 
*1,419 
*231 
*850 
*421 

*79 

*611 

299,778 

*147 

*36 

*17,292, 

*351 

*521 

*385, 

674, 



,606.76 

,782.25 

,000.00 

,484.35 

,608.10 

,560.33 

,419.66 

,927.53 

,000.00 

,230.04 

,637.55 

,295.45 

,563. 

,057.92 

,632.60 

,380.35 

,562.59 

,676.67 

,201.64 

,453.64 

,629.81 

,609.99 

,172.73 

,871.37 

,922. 

,898.17 

,382.29 

,759.73 

,892.69 

,928.55 

,518.29 

,600.74 

,524.25 

,980.14 

,018.62 

,529.50 

,326.97 

,370.14 

,956.06 

,223.56 

,897.96 

,459.40 



26,003.35 



5,009.81 



$1,594,091,904. 



165.08 
257.00 

868.30 
051.90 
687.58 
519.80 
145.49 
662.33 
567.43 
119.32 



*44 

53 

*3,621 

*606 

577 

251 

684 

*4,944 

50 

1,722 

2,303 

80 

386 

1,373 

5,978 

*443 

*167, 

*70, 

*153, 

*230, 

*63, 

*204, 

*152, 

1,663, 

415, 

124, 

*231, 

*850, 

421, 

*79, 

*611, 

899, 

*147, 

*36, 

4,469, 

*351. 

*292, 

*385, 

674, 

*68, 

599, 

*498, 



,606.76 
,782.25 
,730.00 
,555.60 
,608.10 
,239.27 
,419.66 
,927.53 
,000.00 
,230.04 
,539.00 
,295.45 
,666.08 
,057.92 
,632.60 

,380.35 
,562.59 
,676.67 
,201.64 
,453.64 
,629.81 
,609.99 
172.73 
.871.37 
922.68 
809.04 
382.29 
759.73 
892.69 
928.55 
518.29 
335.80 
524.25 
980.14 
986.81 
529.50 
829.35 
370. 14 
956.06 
223.56 
897.96 
459.40 



155,659,199.52 



Eail WAYS — 1 934 



287 



— 1934 



Cost of Equipment 


Capital Stock 


Funded Debt 


Entire 


N. C. 


Entire 


N. C. 


Entire 


N. C. 


$ 76,795,844.61 


$ 16,081,049.86 


$ 82,539,400.00 


1 17,283,750.36 


$ 144,792,239.00 


$ 30,319,492.96 


12,853.22 


12,853.22 


1,000,000.00 


1,000,000.00 


2,019,327.49 


2,019,327.49 




















17,653,390.55 


7,779,849.21 


25,000,000.00 


11,017,500.00 


25,896,853.65 


11,412,743.40 


185,636.22 


130,390.88 


1,402,950.00 


985,432.98 


2,071,000.00 


1,454,670.40 


3,555.617.14 


3,025,119.96 


16,000,000.00 


13,612,800.00 


15,756,340.93 


13,405,494.86 


325,000.00 


325,000.00 


1,797,200.00 


1,797,200.00 


301,000.00 


301,000.00 








500,000.00 


500,000.00 


51,000.00 


51,000.00 


130,915,434.46 


6,833,785.65 


163,640,600.00 


8,542,039.32 


86,909,531.92 


4,536,775.66 


53,986,583.91 


10,198,065.70 


85,110,662.21 


16,077,404.09 


158,128,485.71 


29,870,470.80 


118,534,385.03 


17,033,391.10 


195,470,200.00 


28,089,067.70 


292,876,700.00 


42,086,381.70 








24,200.00 


24,200.00 














60,000.00 


60,000.00 














1,700,000.00 


*283, 730.00 


20,000,000.00 


*3, 338, 000. 00 


36,820.25 


*2,934.57 


2,180,000.00 


*173,746.00 


5,450,000.00 


*434,365.00 








60,000.00 


60,000.00 


643,000.00 


643,000.00 








368,600.00 


42,941.90 


1,052,000.00 


122,558.00 








248,800.00 


248,800.00 


402,000.00 


402,000.00 








4,000,000.00 


4,000,000.00 














50,000.00 


50,000.00 














924,000.00 


924,000.00 


801,000.00 


801,000.00 


612,841.19 


94,683.96 


4,176,200.00 


645,222.90 


6,009,500.00 


928,467.75 








31,300.00 


31,300.00 








107,905.43 


26,447.62 


323,400.00 


79,265.34 


1,519,000.00 


372,306.90 








625,000.00 


625,000.00 


615,000.00 


615,000.00 


750,627.58 


750,627.58 


1,245,000.00 


1,245,000.00 


5,000,000.00 


5,000,000.00 








199,900.00 


199,900.00 


118,000.00 


118,000.00 








100,000.00 


100,000.00 














10,000.00 


10,000.00 


34,000.00 


34,000.00 








41,350.00 


41,350.00 


40,000.00 


40,000.00 








50,000.00 


50,000.00 


350,000.00 


350,000.00 








25,300.00 


25,300.00 


17,000.00 


17,000.00 








168,800.00 


168,800.00 














80,000.00 


80,000.00 








202,307.48 


202,307.48 


1,350,000.00 


1,350,000.00 








12,200.00 


12,000.00 


55,500.00 


55,500.00 


401,015.10 


401,015.10 








490,800.60 


43,141.32 


500,000.00 


43,950.00 








196,300.00 


196,300.00 














218,775.00 


218,775.00 














185,500.00 


185,500.00 


60,000.00 


60,000.00 








60,000.00 


60,000.00 














450,000.00 


450,000.00 








145,422,402.02 





117,000,000.00 


351,000.00 


231,867,940.00 


695,603.82 








69,700.00 


69,700.00 














75,000.00 


75,000.00 


4,250.00 


4,250.00 








8,584,500.00 


2,219,093.25 


8,251,100.00 


1,615,909.35 








72,000.00 


72,000.00 


250,000.00 


250,000.00 








250,000.00 


140,425.00 














195,000.00 


195,000.00 








88,584.58 


88,584.58 


141,000.00 


141,000.00 


524,000.00 


524,000.00 








66,000.00 


66,000.00 








16,381.60 


16,381.60 


125,000.00 


125,000.00 


720,000.00 


720,000.00 








165,000.00 


165,000.00 


93,750.00 


93,750.00 


1 549,214,815.27 


% 62,613,472.97 


$ 718,902,937.21 


$ 114,252,185.16 


% 1,011,525,033.80 


$ 153,081,533.19 



288 



'N. C. Utilities Commission 



Railways- 



Railroad 



Atlantic Coast Line 

Atlantic & Yadkin 

Clinchfield 

Car., Clinchfield & Ohio 

Carolina & Northwestern 

Norfolk Southern 

Atlantic & N. C 

Durham & S. C 

Norfolk & Western 

Seaboard Air Line 

Southern 

Southern Subsidiaries: 

Asheville & Craggy Mtn 

Asheville Southern 

Atlanta & Charlotte A. L... 

Atlantic & Danville 

Carolina & Tenn. Sou 

Danville & Western. 

High Pt., Asheboro & Sou.. 

North Carolina 

North & South Carolina... 

N. C. Midland 

Southern R . — Car. Div — 

State University 

Tallulah Falls 

Yadkin 

Winston-Salem Southbound.. 
Miscellaneous Roads: 

Aberdeen & Rockfish 

Appalachian 

Atlantic & Carolina 

Atlantic & Western 

Black Mountain 

Cape Fear Railways 

Carolina Southern 

Cliffside 

Durham & Southern 

East Carolina 

East Tenn. & W. N. C 

Graham County 

High Pt., Thorn. & Dan.... 

Laurinburg Southern 

Lawndale Ry. & Ind. Co... 

Linville River 

Louisville & Nashville 

Maxton, Alma & Southern . 

Moore Central 

Piedmont & Northern 

Rockingham 

Tenn. & North Carolina ... 
Tuckaseegee& Southeastern 

Virginia & Carolina Sou 

Warrenton 

Washington & Vandemere.- 
Wilmington, Bruns. & Sou.. 

Totals 



Operating Revenue 



Entire 



$39,533,827.47 

673,677.91 

5,998,826.32 



532,981.53 

4,763,117.09 



Operated by 

72,707,867.05 

33,861,442.04 

78,183,700.62 

15,888.49 
Operated by 
Operated by 
Operated by 

14,500.44 
356,513.61 

50,143.55 
Operated by 
Operated by 
Operated by 
Operated by 

23,049.88 



101,375.18 

729,255.95 

165,022.69 
18,326.16 
33,407.35 
46,757.49 
21,853.17 
58,380.84 
30,115.91 
19,477.57 

532,423.64 
56,759.27 

197,998.56 
26,241.28 

255,113.09 

82,503.65 

15,443.86 

35,891.12 

69,962,668.16 

9,950.33 

15,216.56 

1,834,061.92 

48,569.46 

88,321.48 

13,692.88 

117,265.77 

21,484.65 

Operated by 

19,328.10 



$311,272,442.09 



N. C. 



$ 9,617,931.40 

673,677.91 

2,125,474.02 



449,069.12 

4,19.6,964.27 



Norfolk Sou 

788,639.05 

8,098,546.71 

17,509,143.18 

15,888.49 

Southern Ry. 

Southern Ry. 

Southern Ry. 
14,500.44 
38,859.98 
50,143.55 

Southern Ry. 

Southern Ry. 

Southern Ry. 

Southern Ry. 

23,049.88 

14,999.06 

101,375.18 

729,255.95 

165,022.69 
18,326.16 
33,407.35 
46,757.49 
21,853.17 
58,380.84 
30,115.91 
19,477.57 

532,423.64 
56,759.27 
17,423.87 
26,241.28 

255,113.09 
82,503.65 
15,443.86 
35,891.12 
18,349.84 
9,950.33 
15,216.56 

490,011.56 
48,569.46 
29,440.49 
13,692.88 

117,265.77 

21,484.65 

Atlantic Coas 

19,328.10 



$46,645,968.79 



Operating Expenses 



Entire 



$30,897,534 

569,090.60 

3,793,003.61 



375,633.91 

3,623,131.18 



thern R. R. 

44,531,257.03 

28,814,732.54 

58,120,443.83 

16,451.84 



16,311.34 
248,620.57 
52,896.59 



29,238.10 



107,959.26 
517,836.13 



109, 
22, 
19, 
42, 
20, 
49, 
24, 
13, 

270, 
46, 

138, 
30, 

220, 
57, 
12, 
41, 
53,330, 
10, 
15, 
1,073, 
33, 
71, 



697.91 
952.38 
260.84 
332.14 
451.13 
716.10 
651.16 
592.44 
945.51 
679.52 
726.49 
862.86 
298.97 
570.30 
528.04 
329.96 
787.80 
931.85 
675.15 
691.62 
055.16 
910.28 
781.50 
993.22 
533.80 



78 
15 

t Line 

14,307.90 



$227,519,405.45 



N. C. 



$ 7,450, 

569, 

1,092, 



298 
3,192 



329.69 
090.60 
455.04 


361.73 
630.72 





853, 
6,891, 
12,768, 



280.04 
533.02 
936.42 



16,451.84 



16,311.34 
27,099.64 
52,896.59 



29,238.10 

25,187.52 

107,959.26 

517,836.13 

109,697.91 
22,952.38 
19,260.84 
42,332.14 
20,451.13 
49,716.10 
24,651.16 
13,592.44 

270,945.51 
46,679.52 
12,207.93 
30,862.86 

220,298.97 
57,570.30 
12,528.04 
41,329.96 
34,346.49 
10,931.85 
15,675.15 

287,212.50 
33,055.16 
23,970.09 
38,781.50 
78,993.22 
15,533.80 



14,307.90 



$35,457,482.53 



Net Operat- 



Entire 



$ 8,636,292.58 

104,587.31 

2,205,822.71 



157,347.62 

1,139,985.91 





28,176,610.02 

5,046,709.50 

20,063,256.79 

*563.35 



*1,810.90 

107,893.04 

*2,753.04 



♦6,584.08 
211,419.82 

55,324.78 

*4,626.22 

14,146.51 

4,425.35 

1,402.04 

8,664.74 

5,464.75 

5,885.13 

261,478.13 

10,079.75 

59,272.07 

*4, 621.58 

34,814.12 

24,933.35 

2,915.82 

*5,438.84 

,631,880.36 

*981.52 

*458.59 

760,370.30 

15,514.30 

16,411.20 

25,088.62 

38,272.55 

5,950.85 



5,020.20 



$83,753,036.54 



Eailways — 1934 



289 



1934 — Continued 



i ng Income 


Freight Revenue 


Passenger Revenue 


Passenger Transfer Service 


N. C. 


Entire 


N. C. 


Entire 


N. C. 


Entire 


N. C. 


$ 2,167,601.71 

104,587.31 

1,033,018.98 


$ 29,791,282.01 

619,170.32 

5,102,663.22 


% 7,540,126.14 

619,170.32 

2,085,637.40 


% 5,035,918.41 
23,298.17 
40,818.23 


% 1,216,487.95 
23,298.17 
14,958.72 


S 8,194,214.24 
44,599.79 
82,192.26 


$ 1,188,857.55 
44,599.79 
32,395.87 


150,707.39 
1,004,333.55 


494,489.95 
4,419,046.61 


415,499.87 
3,929,486.88 


14,425.33 
122,761.66 


12,183.63 
90,929.30 


31,875.49 
269,453.66 


27,886.58 
219,583.34 
















*64,640.99 
1,207,013.69 
4,740,206.76 

*563.35 


68,617,069.80 
26,834,794.37 
62,833,894.49 

15,764.92 


702,860.09 
6,838,843.16 
14,410,009.94 

15,764.92 


1,780,032.08 
3,446,872.86 
8,003,501.62 


16,115.73 

712,866.92 

1,728,081.10 


3,364,901.20 
5,798,998.77 
13,116,053.81 


64,354.94 
1,133,026.48 
2,826,548.35 








































*1,810.90 
11,760.34 
*2, 753.04 


14,325.84 

334,570.02 

46,307.28 


14,325.84 
36,468.13 
46,307.28 


145.84 

4,634.72 

931.17 


145.84 
505. 18 
931.17 


145.84 
18,582.28 
2,784.14 


145.84 
2,025.46 
2,784.14 












































*6, 188.22 
10,188.46 


18,827.67 


18,827.67 

9,127.12 

100,162.10 

708,176.26 

155,401.83 
18,168.16 
31,582.14 
40,354.79 
21,732.75 
50,584.94 
29,434.72 
18,973.04 

511,212.21 
54,208.85 
16,104.30 
26,005.78 

250,978.96 
78,838.12 
15,443.86 
26,874.43 
15,227.46 
7,928.42 
13,940.83 

440,751.60 
47,475.10 
26,307.89 
13,635.38 

105,914.31 
20,576.88 


328.84 


328.84 
970.65 


2,508.64 


2,508.64 
4,653.86 


*6,584.08 


100,162.10 
708,176.26 

155,401.83 
18,168.16 
31,582.14 
40,354.79 
21,732.75 
50,584.94 
29,434.72 
18,973.04 

511,212.21 
54,208.85 

183,003.39 
26,005.78 

250,978.96 

78,838.12 

15,443.86 

26,874.43 

59,129,377.18 

7,928.42 

13,940.83 

1,647,669.55 

47,475.10 

78,923.69 

13,635.38 

105,914.31 
20,576.88 




41.62 
12,824.50 

9,225.34 


41.62 


211,419.82 

55,324.78 
*4,626.22 


145.85 
3,639.44 


145.85 
3,639.44 


12,824.50 
9,225.34 


14,146.51 
4,425.35 
1,402.04 


67.82 
1,837.10 


67.82 
1,837.10 


1,410.31 

4,966.70 

86.83 

528.50 

571.18 

488.53 

17,021.52 

164.44 

9,267.16 


1,410.31 

4,966.70 

86.83 


8,664.74 
5,464.75 
5,885.13 
261,478.13 
10,079.75 


528.50 

74.44 

.40 

5,363.85 


528.50 

74.44 

.40 

5,363.85 


528.50 
571.18 
488.53 
17,021.52 
164.44 


5,215.94 
*4, 621.58 


2,401.66 


211.34 


813.51 


34,814.12 

24,933.35 

2,915.82 


1.92 
8.44 


1.92 
8.44 


1,712.05 

2,789.97 


1,712.05 

2,789.97 


*5,438.84 

*15,996.65 

*981.52 

*458.59 

202,799.06 

15,514.30 

5,470.40 

25,088.62 


2,086.09 

5,306,214.32 

158.82 

3.62 

91,847.81 

123.49 

2,239.35 


2,086.09 

1,191.40 

158.82 

3.62 

24,569.28 

123.49 

746.45 


8,383.94 

8,785,921.85 

1,959.91 

877.34 

122,440.00 

1,012.24 

8,247.94 


8,383.94 
2,212.34 
1,959.91 
877.34 
32,752.70 
1,012.24 
2,749.31 


38,272.55 
5,950.85 


2,567.69 


2,567.69 


7,560.09 
768.40 


7,560.09 
768.40 










5,020.20 


12,535.00 


12,535.00 


925.78 


925.78 


5,928.73 


5,928.73 


$11,188,486.26 


5 262,541,309.17 


139,540,984.84 


$23,894,625.32 


S 3,862,054.90 


$39,930,509.21 


J 5,666,220.84 



290 



T^. C. Utilities Commission 



Railways — 



Railroad 


Number Passengers 
Carried 


Tons Freight 
Carried 




Entire 


N. C. 


Entire 


N. C. 




2,142,470 
49,697 
106,451 


903,519 
49,697 


11,267,620 

162,048 

4,297,691 




Atlantic Coast Line 


3,767,004 
162,048 




Clinchfield 


2,733,783 


Carolina, CUnchfield & Ohio.... 




Carolina & Northwestern 


54,383 

358,078 

Operated by 

Operated by 

1,345,379 

1,519,660 

5,273,060 


45,932 

162,180 

Norfolk Sout 

Norfolk Sout 

34,422 

314,289 

1,682,370 


304,803 

1,867,697 

hern R. R. 

hern R. R. 

37,660,111 

10,711,978 

25,652,726 

7,730 


293 286 


Norfolk Southern 


1 700 589 


Atlantic & North Carolina .-. 




Durham & South Carolina 




Norfolk & Western 


1,979,334 




3,680,384 




8,613,492 


Southern Subsidiaries: 
Asheville & Craggy Mountain _ _. 


7 730 


Asheville Southern -- 


Operated by 

Operated by 

Operated by 

962 

20,561 

3,781 
Operated by 
Operated by 
Operated by 
Operated by 

2,080 


Southern Ry. 

Southern Ry. 

Southern Ry. 

962 

6,929 

3,781 

Southern Ry. 

Southern Ry. 

Southern Ry. 

Southern Ry. 
2,080 
5,874 




Atlanta & Charlotte Air Line 






Atlantic and Danville 








35,079 
194,789 
41,195 


35,079 


Danville & Western . . . .. 


23,735 


High Point, Randleman, Asheboro & Sou. 


41,195 






















25,866 


25,866 


Tallulah Falls 


22,428 


Yadkin 




90,938 
675,745 

159,814 
29,015 
61,720 
50,311 
45,333 
84,405 
70,242 
20,493 

313,303 
55,960 

249,464 
43,682 

168,370 
75,963 
12,861 
31,066 
33,191,929 
8,104 
11,216 


90,938 


Winston-Salem Southbound 


150 
13,089 


150 
13,089 


675 745 


Miscellaneous Roads: 
Aberdeen & Rockfish 


159,814 




29,015 


Atlantic & Carolina - - - - 


472 
11,221 


472 
11,221 


61,720 




50,311 




45,333 




1,058 


1,058 


84,405 


dnrnlinn Snuthprn 


70 242 


Cliffside -- --- 


40 
9,931 


40 
9,931 


20,493 




313,303 


East Carolina 


55 960 


East Tenn & Western North Carolina 


3,205 










43,682 


High Point, Thomasville & Denton 


2 


2 


168,370 
75,963 








12,861 


Linville River - . _ 


5,270 

3,809,205 

526 


5,270 

7,625 
526 


31,066 




65,008 




8,104 




11,216 


Pipflninnt Jir ^nrthprn 


558,445 
233 

5,598 








233 


38,022 
87,119 
15,619 
97,763 
26,874 
t Line R. R. 
8,566 


38,022 










15,619 


Virginia & Carolina Southern 


11,395 


11,395 


97,763 


Warrenton - -- 


26,874 


Washington & Vandemere -- 


Operated by 
1,172 


Atlantic Coas 
1,172 




Wilmington, Brunswick & Southbound..- 


8,566 


Totals 


15,307,574 


3,274,219 


127,953,230 


25,346,346 



E AIL WAYS — 1 934 



1934 — Continued 



291 









Taxes 


Paid 






Employees 


State 


Federal 


Total 


Entire 


N. C. 


Entire 


N. C. 


Entire 


N. C. 


Entire | N. C. 


14,337 
247 


247 


$ 3,516,058.33 

24,161.56 

451,331.58 


$ 990,661.26 
24,161.56 

207,699.50 
28,112.62 
18,583.76 

261,957.95 


$ 38,941.06 

723 .30 

28,668.42 

151,887.38 

687 .70 

2,055.56 


$ 


$ 3, 555, 000 .0( 

24,885.16 

480, 000 .OC 

180, 000 .OC 

26,312 .7S 

314,013.51 


)$ 






1 149 












186 




25,625.05 
311,957.95 






1 744 




























18,758 


11 


4,838,113.48 
2,163,063.86 
5,101,949.26 


81,703.93 

503,494.66 

1,578,589.63 


2,929,886.52 
34,850.13 
78,197.91 




7,768,000.00 
2,197,913.99 
5,180,147.17 

405.51 




12 414 






27,512 
11 






















































5 


5 


1,094.98 


1,094.98 






1,094.98 
16,245.07 
5,765.37 




141 








27 


27 


5,702.33 


5,702.33 


63.04 




























































13 


13 


537.22 


537.22 






537.22 












65 


65 
147 

46 
15 
14 
33 
10 
29 
25 
13 
115 
48 


6,716.39 
74,451.29 


6,716.39 
74,440.46 


118.36 
1,548.71 




6,834.75 
76,000.00 

11,500.08 
92.05 

404 .20 
1,200.00 

630 .00 
1,368.37 

724 .80 

1,891.50 

62,285.59 

2,986.77 

14,362.06 

1,193.05 

8,098.27 

5,944.90 

1,010.26 

1,717.53 

3,822,906.25 

295 .96 

480 .00 

193,703.39 

2,225.00 

2,761.56 

490 .29 
9,110.89 
3,607.28 




147 






46 






15 












14 












33 












10 












29 












25 












13 












115 


45,307.43 


45,307.43 


19,978.16 






48 






84 












9 


9 
110 
35 

19 

19 

10 
12 

23 












110 












35 












19 












19 












22,966 


3,792,136.27 


5,408.06 


30,769.98 






10 






12 












373 


154,941.58 


45,168.78 


38,761.81 






23 






47 












21 


21 

64 
32 












64 


8,865.87 




245 .02 






32 




















16 


16 










1,045.63 
















100,944 


1,233 


$20,522,014.43 


$ 3,879,340.52 


$ 3,357,383.00 




1 23,988,190.66 





292 



]N^. C. Utilities Commission 



RAILWAYS 





4 Road Owned 


Road Operated 


Railroad 


Entire 


N. C. 


Entire 


N. C. 


Atlantic Coast Line ..... 


4,830.88 
163.10 


1,008.80 
163.10 


5,145.70 
163.10 
309 .29 


1,057.05 


Atlantic & Yadkin.. 


163.10 


Clinchfield 


117.40 


Carolina, Clinchfield & Ohio 


266.36 

124 .34 

788.71 

95.82 

38.08 

2,113.46 

3,328.61 

4,187.20 

3.21 
2.27 

255 .44 

277.71 
13.96 
76.90 
26.85 

224.12 

4.79 

53.50 

690.28 
10.15 
57.10 
40.52 
87.70 

44.90 

9.52 
24.00 
12.83 

5.00 
21.55 

7.07 
56.87 
26.90 
36.18 
12.13 
33.78 
27.63 

9.28 
34.79 
4,755.92 
15.07 
10.11 
161.29 
22.02 
46.00 
12.18 
52.96 

3.00 
39.56 
30.20 


117.40 
87.34 
679.18 
95.82 
38.08 
101.33 
627 .35 
590 .84 

3.21 

2.27 
42.64 
22.15 
13.96 

8.96 

26.85 

224.12 

4.79 
53.50 
106 .68 
10.15 
14.00 
40.52 
87.70 

44.90 

9.52 
24.00 
12.83 

5.00 
21.55 

7.07 
56.87 
26.90 

3.18 
12.13 
33.78 
27.63 

9.28 
34.79 
13.19 
15.07 
10.11 
41.83 
22.02 
25.84 
12.18 
52.96 

3.00 
39.56 
30.20 




Carolina & Northwestern 


133 .54 

834 .97 

(2) 

(2) 
2,116.77 
4,307.99 
6,641.22 

7.08 

(3) 

(4) 

(4) 
13.96 
81.89 
26.85 

(4) 

(4) 

(4) 

(4) 
13.85 
57.10 
52.69 
90.21 

51.90 
10.52 
30.00 
14.29 
10.00 
21.55 
8.22 
56.87 
33.70 
51.21 
12.13 
33.78 
28.13 
12.70 
38.39 
5,009.27 
17.68 
11.44 

176.75 
26.03 
83.24 
13.25 
67.06 
3.00 

(5) 
35.90 


96.54 


Norfolk Southern 


721 .49 


Atlantic & North Carolina 


(2) 


Durham & South Carolina 


(2) 


Norfolk & Western 


112.23 


Seaboard Air Line 


629 .87 


Southern _. 


1,201.77 


Southern Subsidiaries: 
Asheville & Craggy Mountain 


7.08 




(3) 


Atlanta & Charlotte Air Line 


(4) 


Atlantic & Danville 


(4) 




13.96 


Danville & Western.... 


8.96 


High Point, Randleman, Asheboro & Southern.. . 
North Carolina 


26.85 

(4) 


North & South Carolina 


(4) 


North Carolina Midland 


(4) 


Southern Ry. — Carolina Division 


(4) 


State University 


13.85 


Tallulah Falls 


14.00 


Yadkin 


52.69 


Winston-Salem Southbound . 


90.21 


Miscellaneous Roads: 


51.90 




10.52 


Atlantic & Western 


30.00 




14.29 


Cape Fear Railways 


10.00 


Carolina Southern 


21.55 


Cliffside 


8.22 


Durham & Southern 


56.87 


East Carolina. 


33.70 


East Tenn. & Western North Carolina 


3.18 


Graham County .. 


12.13 


High Point, Thomasville & Denton 


33.78 


Laurinburg & Southern . 


28.13 


Lawndale Railway & Industrial Co. 


12.70 




38.39 




13.19 




17.68 




11.44 




47.39 


Rockingha m 


26.03 


Tennessee & North Carolina 


26.84 


Tuckaseegee & Southeastern . _ . . 


13.25 


Virginia & Carolina Southern 


67.06 


Warrenton 


3.00 


Washington & Vandemere 


(5) 


Wilmington, Brunswick & Southern 


35.90 






Totals 


23,271.80 


4,766.13 


25,853.22 


4,954.19 



(1)— Operated by Clinchfield R. R. Co. (2)— Operated by Norfolk Southern R. R. Co. 
(3)— Operated by Asheville & Craggy Mountain Ry. (4)— Operated by Southern Railway. 
(5) — Operated by Atlantic Coa.st Line R. R. 



Railways — 193i 



293 



— 1935 



Cost of Road and Equipment 


Capital Stock 


Funded Debt 


Entire 


N. C. 


Entire 


N. C. 


Entire 


N. C. 


$ 268,323,606 


% *56,025,968 


% 82,539,400 


$ *17,234,226 


$ 151,727,930 


$ *31,680,791 


2,644,242 


2,644,242 


1,000,000 


1,000,000 


1,500,000 


1,500,000 


67,549,011 


*29,768,849 


25,000,000 


*11, 017,500 


25,467,000 


♦11,223,306 


4,076,135 


*2, 863,077 


1,402,950 


*985,432 


2,071,000 


♦1,454,670 


31,961,277 


*27,521,855 


16,000,000 


*13,777,600 


16,548,458 


♦14,249,877 


2,088,102 


2,088,102 


1,797,200 


1,797,200 


301,000 


301,000 


847,145 


847,145 


500,000 


500,000 


33,000 


33,000 


456,422,827 


*21,908,295 


163,640,600 


*6, 854, 748 


52,139,532 


♦2,502,697 


242,519,737 


*45,690,718 


16,026,337 


*3, 019, 361 


27,977,676 


♦5,270,994 


521,189,653 


*73,539,860 


189,820,000 


*26,783,602 


287,779,164 


40,605,640 


44,607 


44,607 


24,200 


24,200 






77,474 


77,474 


60,000 


60,000 






21,700,000 


*3, 621, 730 


1,700,000 


*283,730 


20,000,000 


3,338,000 


7,647,304 


*609,490 


2,180,000 


*173,746 


5,450,000 


♦434,365 


576,886 


576,886 


60,000 


60,000 


643,000 


643,000 


2,152,283 


*251,817 


368,600 


*43,126 


1,052,000 


♦123,084 


684,152 


684,152 


248,100 


248,100 


402,000 


402,000 


4,944,927 


4,944,927 


4,000,000 


4,000,000 






50,000 


50,000 


50,000 


50,000 






1,722,230 


1,722,230 


924,000 


924,000 


801,000 


801,000 


15,522,479 


*2, 398, 223 


4,176,200 


♦645,222 


6,009,500 


♦928.467 


80,183 


80,183 


31,100 


31,100 






1,661,498 


*407,233 


323,400 


♦79,265 


1,519,000 


♦372,306 


1,375,529 


1,375,529 


625,000 


625,000 


615,000 


615,000 


6,716,229 


6,716,229 


1,245,000 


1,245,000 


5,000,000 


5,000,000 


453,713 


453,713 


199,900 


199,900 


109,000 


109,000 


70,676 


70,676 


10,000 


10,000 


30,000 


30,000 


153,922 


153,922 


41,350 


41,350 


40,000 


40,000 


230,298 


230,298 


50,000 


50,000 


325,000 


325,000 


63,629 


63,629 


25,300 


25,300 


14,250 


14,250 


199,901 


199,901 

152,172 

1,918,918 


168,800 

80,000 

1,350,000 


168,800 

80,000 

1,350,000 







152,172 






1,918,918 






336,243 


336,243 


55,500 


55,500 


300,000 


300,000 


1,415,097 


*124,528 


490,800 


♦43,190 


352,700 


♦31,027 


231,382 


231,382 


196,300 


196,300 






854,904 


854,904 


218,775 


218,775 






423,836 


423,836 


185,500 


185,500 


60,000 


60.000 


79,928 


79,928 


60,000 


60,000 






573,400 


573,400 


450,000 


450,000 






441,514,765 


*1, 192,089 


117,000,000 


♦315,900 


229,545,030 


♦619,771 


147,524 


147,524 


69,700 


69,700 






23,924 


23,924 


75,000 


75,000 






17,631,449 


*4, 571, 834 


8,584,500 


♦2,225,960 


6,251,100 


♦1,620,910 


352,375 


352,375 


72,000 


72,000 


250,000 


250,000 


521,326 


*29,282 
385,370 


250,000 
189,000 


♦140,425 
189,000 






385,370 






764,977 


764,977 


141,000 


141,000 


524,000 


524,000 


68,223 


68,223 


66,000 


66,000 






599,897 


599,897 


125,000 


125,000 


720,000 


720,000 


501,134 


501,134 


165,000 


165,000 


93,750 


93,750 


$ 2,138,246,499 


J 300,962,900 


$ 644.061.512 


$ 99,181,758 


$ 845.651,090 


$ 126,216,375 



294 



iN". C. Utilities Commission 



Railways — 





Operating Revenue 


Operating Expenses 


Railroad 


Entire 


N.C. 


Entire 


N.C. 




$ 39,042,246 
703,945 
5,315,015 
(1) 

609,096 
4,621,833 
(2) 
(2) 
78,044,384 
33,944,811 
82,903,703 

11,369 

(3) 
(4) 
(4) 

13,359 
396,452 

56,598 
(4) 
(4) 
(4) 
(4) 

20,276 


$ 9,674,123 

703,945 

2,132,404 


$ 32,063,675 

618,845 

3,087,169 


$ 7,842,760 


Atlantic & Yadkin... 


618,845 


Clinchfield 


1 139 926 


Carolina, Clinchfield & Ohio 




Carolina & Northwestern 


518,028 
4,059,670 


398,043 
3,720,310 


316,255 


Norfolk Southern 


3,267,628 


Atlantic & North Carolina . . . . 




Durham & South Carolina - 








Norfolk & Western 


775,200 
7,964,095 
18,324,463 

11,369 


44,499,165 
29,394,023 
60,948,975 

21,238 


811,152 




6,896,399 




13,309,732 


Southern Subsidiaries: 


21,238 


Asheville Southern 




Atlanta & Charlotte Air Line 








Atlantic & Danville 








Carolina & Tennessee Southern 


13,359 
46,384 
56,598 


15,832 
252,345 
52,504 


15,832 


Danville & Western . 


29,524 


High Point, Randleman, Asheboro & So.. 


52,504 


North & South Carolina .. -._. 
























State University 


20,276 

17,615 

127,550 

777,743 

169,096 
38,257 
43,307 
23,590 
42,476 
26,866 
19,976 

459,955 
55,494 
17,513 
24,401 

263,863 
80,445 
15,351 
42,980 
16,896 
9,829 
20,927 

464,457 

46,781 

35,180 

9,396 

112,392 
22,980 


34,308 


34,308 


Tallulah Falls 


20,474 


Yadkin 


127,550 
777,743 

169,096 
38,257 
43,307 
23,590 
42,476 
26,866 
19,976 

459,955 
55,494 

199,019 
24,401 

263,863 

80,445 

15,351 

42,980 

75,694,731 

9,829 

20,927 

1,791,728 

46,781 

62,599 

9,396 

112,392 
22,980 

(5) 
21,034 


102,451 
538,117 

110,553 
21,689 
37,830 
16,619 
37,557 
24,005 
12,678 

279,508 
37,242 

127,794 
28,409 

213,542 
58,279 
10,845 
37,743 
57,795,870 
10,112 
20,671 
1,027,618 
32,738 
61,767 
33,000 
71,945 
16,340 


102,451 




538,117 


Miscellaneous Roads: 


101,553 




21,689 




37,830 


Black Mountain 


16,619 


Cape Fear Railways 


37,557 


Carolina Southern 


24,005 


Cliffside 


12,678 


Durham & Southern . - 


279,508 


East Carolina ... . .. 


37,242 


East Tenn. & Western North Carolina.... 


11,245 
28,409 


High Point, Thomasville & Denton.. 


213,542 
58,279 


Lawndale Railway & Industrial Co 


10,845 
37,743 




31,237 




10,112 




20,671 




268,153 




32,738 


Tennessee & Western North Carolina..... 
Tuckaseegee & Southeastern 


34,713 
33,000 


Virginia-Carolina Southern . 


71,945 


Warrenton .. 


16,340 


Washington & Vandemere 




Wilmington, Brunswick & Southern 


21,034 


16,857 


16,857 


Totals 


$ 325,885,853 


$ 47,306,264 


$ 235,888,211 


% 36,490,655 







Bold face type — Deficit. 



Railways — 19 3 5 



295 



1935 — Continued 



Net Operat 


ng Income 


Freight Revenue 


Passenger Revenue 


Pass. Transfer Service 


Entire 


N. C. 


Entire 


N. C. 


Entire 


N. C. 


Entire 


N. C. 


S 6,978,571 

85,100 

2,227,846 


$ 1,831,363 

85,100 

992,478 


$ 28,592,602 

645,008 

5,205,739 


$ 7,473,931 

645,008 

2,088,891 


$ 5,561,189 
24,341 
47,599 


$ 1,311,433 
24,341 
18,065 


$ 8,827,709 
48,233 
86,630 


$ 2,013,584 
48,233 
34,496 


211,053 
901,523 


201,773 
792,042 


567,694 
4,279,653 


481,862 
3,798,359 


15,283 
120,268 


12,908 
88,925 


32,830 
267,846 


28,760 
218,128 


















33,545,219 

4,550,788 

21,954,738 

9,869 


35,952 

1,067,696 
5,014,728 

9,869 


73,661,075 
26,657,911 
66,674,111 

11,266 


689,507 
6,680,915 
15,217,154 

11,266 


1,841,602 
3,656,270 
8,388,170 


16,580 

751,653 

1,750,661 


3,508,941 
5,969,653 
13,746,384 


67,237 
1,162,250 
2,806,973 












































*2,473 

144,107 

4,094 


*2,473 

16,860 
4,094 


13,141 
373,724 
52,871 


13,141 

37,428 
52,871 


169 

4,929 

817 


169 
429 
817 


169 

21,878 
2,384 


169 

2,627 
2,384 


















































*14,032 


*14,032 
2,859 

25,099 
239,626 

58,543 

16,568 

5,477 

6,971 

4,919 

2,861 

7,298 

180,447 

18,252 

6,268 

4,008 

50,321 

22,166 

4,506 

5,237 

14,341 

283 

256 

196,304 

14,043 

467 

23,604 

40,447 

6,640 


18,961 


18,961 

11,662 

125,801 

765,996 

160,538 
36,402 
36,955 
23,449 
31,495 
26,140 
19,461 

437,359 
53,573 
16,059 
24,401 

257,537 
76,931 
15,351 
34,673 
13,678 
7,917 
20,118 

416,474 

46,197 

30,442 

9,391 

100,089 
22,118 


255 


255 
1,197 


2,437 


2,437 
4,923 


25,099 


125,801 
765,996 

160,538 
36,402 
36,955 
23,449 
31,495 
26,140 
19,461 

437,359 
53,573 

182,491 
24,401 

257,537 

76,931 

15,351 

34,673 

63,931,182 

7,917 

20,118 

1,608,011 

46,197 

54,169 

9,391 

100,089 
22,118 




52 
4,318 

8,495 

1,439 

5,282 

92 

79 

568 

499 

19,869 

200 

8,258 


52 


239,626 

58,543 
16,568 
5,477 
6,971 


9 

2,500 

107 

2,160 


9 

2,500 

107 

2,160 


4,318 

8,495 
1,439 

5,282 
92 


4,919 
2,861 
7,298 


79 
11 


79 
11 


79 
568 
499 


180,447 
18,252 


7,762 


7,762 


19,869 
200 


71,225 
4,008 


2,050 


180 


726 


50,321 






3,262 
2,836 


3,262 


22,166 
4,506 


4 


4 


2,836 


5,237 

17,898,861 

283 

256 


1,767 

5,772,546 

119 


1,767 

1,239 

119 


7,630 

9,538,820 

1,844 

710 

124,517 

74 

7,590 


7,630 

2,318 

1,844 

710 


764,110 

14,043 

832 

23,604 


90,866 

74 

1,536 


23,534 

74 

863 


32,249 

74 

4,265 


40,447 
6,640 


3,425 


3,425 


11,242 
801 


11,242 
801 










4,177 


4,177 


13,530 


13,530 


1,008 


1,008 


5,313 


5,313 


$ 90,030,652 


$10,815,609 


$ 274,875,031 


$40,043,031 


$25,546,915 


$ 4,022,274 


$42,268,834 


$ 6,506,364 



296 



J^. C. Utilities Commission 



Railways- 



Railroad 


Number Passengers Carried 


Tons Freight Carried 




Entire 


N. C. 


Entire 


N. C. 




2,182,397 
52,290 

118,659 

(1) 
54,689 

272,446 

(2) 

(2) 
1,422,752 
1,528,774 
5,262,658 


902,981 
52,290 
39,814 

(1) 
46,190 

166,222 


11,706,197 
463,652 
4,249,537 
(1) 

356,789 
1,897,834 


3,934,352 
463 652 


Atlantic & Yadkin . ..- 


Clinchfield ... 


2,670,663 
(1) 
293,781 








1,620,945 














Norfolk & Western 


35,265 

314,284 

1,666,177 


39,345,242 
11,091,808 
26,556,404 

50,070 


1 929 954 


Seaboard Air Line 


3,654,876 


Southern 


9 017 567 


Southern Subsidiaries: 
Asheville & Craggy Mountain . 


50,070 




(3) 
(4) 
(4) 
1,155 

19,741 
3,997 

(4) 

(4) 

(4) 

(4) 
1,705 






Atlanta & Charlotte Air Line 








Atlantic & Danville 










1,155 

5,823 
3,997 


32,455 
228,232 
44,974 


32,455 




27,338 


High Point, Randleman, Asheboro & So.. 


44,974 










N. C. Midland. 
















State University . ... -.. 


1,705 

7,878 


26,668 


26,668 


Tallulah Falls 


16,364 


Yadkin 




112,744 
770,995 

182,574 
74,844 
33,000 
44,927 
28,174 
20,457 
20,198 

254,210 
51,316 

242,995 
34,535 

199,743 

78,723 

13,400 

35,579 

35,830,970 

7,955 

22,024 

*600,000 

39,779 

35,212 

8,386 

90,698 

29,620 


112,744 


Winston-Salem Southbound 






770,995 


Miscellaneous Roads: 
Aberdeen & Rockfish . 


9,131 

838 

13,336 


9,131 

838 

13,336 


182,574 


Atlantic & Carolina . 


74,844 


Atlantic & Western 


33,000 


Black Mountain .. 


44,927 


Cape Fear Railways 


300 
16 


300 
16 


28,174 




20,457 


Cliffside 


20,198 




19,948 


19,948 


254,210 




51,316 


East Tenn. & Western North Carolina.... 
Graham County 


2,941 


*280 


21,382 
34,535 


High Point, Thomasville & Denton 






199,743 


Laurinburg & Southern. 






78,723 


Lawndale Railway & Industrial Co. 






13,400 




4,351 

4,028,974 

389 


4,351 

7,849 
389 


35,579 




58,324 


Maxton, Alma & Southbound 


7,955 




22,024 




558,688 

154 

3,839 


*140,000 
154 


*125,000 


Rockingham 


39,779 


Tennessee & North Carolina 




Tuckaseegee & Southeastern 




8,386 


Virginia & Carolina Southern . 


15,829 


15,829 


90,698 


Warrenton ..... .. 


29,620 




(5) 










12,557 


12,557 










Totals.. 


15,579,997 


3,456,202 


134,925,477 


26,154,803 













Railways — 1 935 



297 



1935 — Continued 



Number Employees 


State Taxes Paid 


Federal Taxes- 
Entire 


1 

Total 


Entire 


N. C. 


Entire 


N. C. 


Taxes 


13,423 
257 
1,095 
(1) 

177 
1,754 


2,802 
257 
482 
(1) 

*124 
*1,510 


$ 3,649,735 
17,350 

460,107 
28,494 
29,913 

270,574 


$ 977,452 
17,350 

214,393 
28,494 
22,051 

225,047 


$ 19,735 
249 

893 

151,506 

691 

2,851 


$ 3,630,000 

17,101 

461,000 

180,000 

30,604 

273,425 














18,987 
12,542 
26,353 

11 


*911 
*2,362 
*3,718 

11 


4,859,974 
2,183,540 
5,027,130 


103,138 

489,580 

1,579,576 


3,980,026 
34,682 
40,847 


8,840,000 
2,218,222 
5,067,977 




































5 


5 

*20 
25 


1,278 


1,278 




1,278 


163 




13,911 


25 


5,870 
39,331 


5,870 
39,331 


70 
43,749 


5,940 
83,080 

































12 


12 


551 


551 




551 








59 
143 

46 


59 
143 

46 
15 
30 
10 
23 
23 
13 

115 

23 

*8 

9 

108 
35 
19 
23 

*50 
8 
11 

*95 
24 
46 
16 
54 
34 


6,723 
74,975 

13,127 

411 

1,120 

630 

857 

924 

1,876 

39,733 

3,582 

16,500 

1,112 

9,898 

6,010 

1,142 

1,654 

3,691,500 

400 

480 

149,190 

2,375 

2,791 

829 

9,331 

2,200 


6,723 
74,975 

13,127 

411 

1,120 

630 

857 

924 

1,876 

39,733 

3,582 

*150 

1,112 

9,898 

6,010 

1,142 

1,654 

5,439 

400 

480 

44,734 

2,375 

*1,400 

829 

9,331 

2,200 


128 
1,525 


6,851 
76,500 

13,127 


15 




411 


30 




1,120 


10 




630 


23 




857 


23 




924 


13 




1,876 


115 
23 


8,877 


48,610 
3,582 


86 




16,500 


9 




1,112 


108 




9,898 


35 




6,010 


19 




1,142 


23 




1,654 


23,609 

8 


619,608 


4,311,108 
400 


11 




480 


373 
24 


52,750 


201,940 
2 375 


46 




2 791 


16 




■ 829 


54 
34 


171 


9,502 
2,200 








19 


19 


1,082 


1,082 




1,082 








99,778 


13,298 


S 20,614,299 


$ 3,936,305 


S 4,918,390 


$ 25,546,600 



298 



'N. C. Utilities Commission 



THE PULLMAN COMPANY 

Organized July 15, 1867 

President: D. A. Crawford. Chicago, 111. 

Secretary: J. F. Lane Chicago, 111. 





MILES OPERATED 














1934 


1935 




Entire 


N. C. 


Entire 


N. C. 




114,972 


1,393.99 






1,393.99 









FINANCIAL 





1934 


1935 




Entire 


N. C. 


Entire 


N. C. 


Capital stock .. . .. . . ... 


$ 108,135,000 


$ 


$ 108,135,000 


$. 


Long-term debt . 








239,748,436 
274,606,297 




244,091,468 
276,275,334 
















Operating Revenue and Expenses 
Revenue from cars 


$ 45,470,467 
43,285,145 




$ 50,063,463 
50,565,082 


$ 


Expenses 


$ 










Net operating income 


$ 2,184,722 
1,785,679 


S 501,619 

1,145,361 




Less taxes 


15,585 


6,488 






Net operating after taxes 


$ 399,043 


% 


$ 1,646,980 


$ 




19,594 


18,594 










Cars in service — Owned 


8,452 




8,007 











Boldface figures — Deficit. 



Railway Express Agency, Inc. 



299 



RAILWAY EXPRESS AGENCY, Inc. 

Organized December 7, 1928 

President: L. O. Head New York, N. Y. 

Secretary: E. R. Merry, Jr New York, N. Y. 

MILEAGE 





1934 


1935 




Entire 


N. C. 


Entire 


N. C. 


Steam roads 


205,967.35 
2,317.26 
9,760.75 
3,090.25 
15,406.00 
7,964.46 
1,729.09 
35.50 


2,752.70 
26.63 


203,212.45 
2,370.91 
12,065.75 
2,926.25 
19,082.00 
8,837.31 
1,882.28 
35.50 


2,753.97 




26.63 












Aircraft 






Stages 


171 .40 
87.00 


171 .05 


Gas motors . ._ 


87.00 


Miscellaneous. 










Totals 


246,270.66 


3,037.73 


250,412.45 


3,038.65 







REVENUE AND EXPENSES 





1934 


1935 


Transportation: 


$ 


130,453,939 


$ 


138,218,842 


Foreign 






499,349 




531,901 






Contract Payments: 
Express privilege — Dr. 


$ 


130,953,289 
50,529,638 


$ 


138,750,744 
53,169,611 






Operations Other Than Transportation 


$ 


80,423,651 
2,483,056 


$ 


85,581,132 
2,487,357 






Total operating revenue 


$ 


82,906,707 

4,905,511 

500,872 

68,278,062 

6,071,014 


$ 
$ 


88,068,489 


Operating Expenses: 


4,300,663 


Traffic- 


512,448 




75,731,150 


General 


4,354,870 






Totals . . 


$ 


79,755,461 


S 


84,899,131 





300 



]^. C. Utilities Commission 



BALANCE SHEET 





1934 


1935 


Assets: 
Investments 


$ 48,861,064 

25,743,868 

941,249 


$ 48 364 233 


Current assets -- .- 


25,333,726 


Unadjusted assets - . - - - - - - 


818,313 






Total assets - .- 


$ 75,546,181 


$ 74,516,272 






Liabilities: 


$ 100,000 

31,998,978 

13,233,887 

21 

30,213,294 


$ 100,000 




31,611,221 




14,119,032 


Deferred liabilities 




Unadjusted credits - -- - 


28,686,019 






Grand totals ... .. . 


$ 75,546,181 


$ 74,516,272 







Southeastern Express Company 



301 



SOUTHEASTERN EXPRESS COMPANY 

Organized 1920. 

President: J. E. Skaggs Atlanta, Ga. 

Secretary: F. W. Woods. Atlanta, Ga. 



MILEAGE 





1934 


1935 




Entire 


N. C. 


Entire 


N. C. 




9,720.56 
70.22 
187 .00 
101.00 


1,385.74 


9,683.74 




1,352.92 


Electric lines 




Inland steamboat lines 




187.00 
643 .90 






41.00 




197.10 






Totals 


10,078.78 


1,430.74 


10,514.64 




1,550 02 







OPERATING REVENUE— ENTIRE 



1934 



1935 



Transportation : 

Express — domestic 

Miscellaneous 

Total transportation 

Contract Payments: 

Express privilege 

Revenue from transportation 

Other Than Transportation: 

Customs brokerage fees 

Rents of buildings and other property 

Money orders 

C. O. D. checks.... 

Miscellaneous 

Total other than transportation 

Total operating revenue 

OPERATING EXPENSES— ENTIRE 



$ 4,992,222 
67,369 



$ 5,442,662 

76,885 



$ 


5,059,591 


$ 5,519,547 


$ 


2,049,400 


$ 2,234,493 




3,010,191 


3,285,054 




80 


54 




356 


330 




29,601 


26,021 




85,989 


84,926 




9,247 


9,427 


125,273 


120,758 



3,135,464 



3,405,812 





1934 


1935 




S 


150,529 

88,603 

2,500,234 

263,813 


$ 


124,024 

92,449 

2,845,732 


Traffic 




General 


187,223 




Totals - .- ... 


$ 


3,003,179 


$ 


3,249,428 





302 



JN^. C. Utilities Commission 



BALANCE SHEET 





1934 


1935 


Assets: 


$ 


1,326,893 

1,259,421 

11,165 

7,016 


$ 


1,215,059 




1,224,104 




9,780 




4,364 






Totals - - . 


$ 


2,604,495 


$ 


2,353,307 






Liabilities: * 


$ 


1,000,000 

631,413 

11,120 

830,743 

131,219 


$ 


1,000,000 




574,263 




10,793 




637,027 




131,224 






Totals ... 


1 


2,804,495 


$ 


2,353,307 






Taxes Paid: 
Entire .. 


$ 


95,719 
33,212 


$ 


96,271 


North Carolina 


32,549 







Postal Telegeaph-Cable Company 



303 



POSTAL TELEGRAPH-CABLE COMPANY 



Organized June 8, 1908 



President: G. S. Gibbs New York, N. Y. 

Secretary: W. Z. Dunn New York, N. Y. 

REVENUE AND EXPENSES— NORTH CAROLINA 





1934 


1935 


Revenue from Transmission: 
Commercial telegraph tolls 


$ 246,261 
2,175 
591 
13,726 
5,295 
5,245 


$ 269,973 


Telegraph tolls on cable messages 


2,262 


Government telegraph tolls 


3,035 


Press telegraph tolls 


12,834 


Money transfer tolls 


5,967 


Stock and commercial news 


5,462 






Sub-totals 


$ 273,293 
12,747 


$ 299,533 


Telephone transmission tolls — Dr. 


12,324 






Total transmission revenue 


$ 260,546 


$ 287,209 






Operations Other Than Transmission: 
Rents from other operated property 


$ 1,713 

4,277 

8,402 

13,800 

167 


$ 1 , 705 


Money transfer premiums 


4,747 


Messenger service revenue 


10,865 


Telephone receipts . 


16,371 


Other non-transmission revenues. 


339 






Total non-transmission . .... 


$ 28,359 


$ 34,027 






Grand totals .. .. . . . 


$ 288,905 
3,025 


$ 321,236 


Uncollectibles 








Grand totals. . 


$ 285,880 


$ 321,236 






Expenses: 
Maintenance 


$ 53,881 

210,192 

14,116 

6,940 


$ 56,646 


Conducting operations 


223,195 


General and miscellaneous 


17,515 


Taxes, operating ... 


7,059 






Total — Operating . 


$ 295,129 

34,583 

6,940 

33,634 


$ 304 415 


Net operating income 


16 821 


Miscellaneous rents 




Other interest deductions _ 









Miles pole lines, 632. 



304 



I^. C. Utilities Commission 



ENTIRE COMPANY 





1934 


1935 






2,727,563 
2,618,405 




2,848,005 




2,641,234 






Net operating income 




109,158 
121,649 




206,771 


Less taxes 


115,117 






Net operating after taxes ... 




87,509 




91,654 






Capital stock 




50,000 
1,356,254 




50,000 




1,637,671 










50,000 
383,483 




50,000 


Total assets 


473,454 






Miles pole lines 


6,245.94 
292 




6,484.5 


Number employees . 


285 







THE WESTERN UNION TELEGRAPH COMPANY 

Organized April, 1851, under Laws of New York. 

President: R. B. White New York, N. Y. 

Secretary: Lewis McKissick New York, N. Y. 

REVENUE AND EXPENSES— NORTH CAROLINA 



1934 



1935 



Inthastate Revenue: 

Commercial telegraph tolls 

Government telegraph tolls 

Press telegraph tolls. 

Messenger service revenue 

Money order premiums and tolls 

Miscellaneous revenues 

Totals 

Interstate Revenue: 

Commercial telegraph tolls 

Government telegraph tolls 

Press telegraph tolls 

Money order premiums and tolls 

Stock and commercial news revenues 

Time service revenues... 

Miscellaneous revenue 

Totals.. 

Grand totals 



$ 


260,268 


$ 


260,615 




3,529 




2,694 




11,759 




14,049 




14,562 




19,745 




14,176 




14,365 




8,210 




8,002 


% 


312,504 


$ 


319,470 


$ 


800,635 


S 


837,266 




10,683 




8,607 




10,930 




9,826 




46,923 




53,109 




104,258 




104,450 




11,708 




12,957 




29,947 




29,991 


s 


1,015,084 


$ 


1,056,206 


$ 


1,327,588 


$ 


1,375,676 



The Westeex Uxiox Telegraph Coimpaxy 



105 



EXPENSES 



1934 



1935 



Conducting operatings. 

Maintenance 

General expenses 

Taxes 



Totals - --- 

Net operating income. 



.1$ 863,232 

-i 376,765 

.\ 58,729 

.! 40,505 



$ 863,804 

368,451 

60,689 

50.462 







$ 1,339,231 


$ 1,343.406 


S 11,643 


$ 32.270 



STATISTICS 



Number telegraph offices 

Miles pole lines 

Miles open Tvire 

Miles cable 

Miles wire in cable. 

Underground conduit (miles trench and duct)._ 
Underground and submarine cable (miles wire) . 



413 
4,233 

30,812 

17 

1.2S0 



403 

4.179 

30.747 

382 



29 
919 

18 



ENTIRE COMPANY 



Total operating revenue _----.- .. . . 




87,230,227 
74,185,465 


, 


89,868,573 


Total operating expense .. - - 


73,797,118 








$ 


13.044,762 
3,300,686 


$ 


16,071,455 


Less taxes .- - .. - . . 


3.410.787 










9,744,076 


$ 


12,660,668 


Capital stock _ .. . .... 




104,527,891 
103,536.098 


$ 


104,527,865 


Corporate surplus ... .. 


106,595.875 










347,892,889 
378,088,365 


$ 


347,917.396 


Total assets .. 


383,751,450 






Miles pole lines . . . ...... 


210,981 

49,457 




210,095 




46.4«8 







306 



JN". C. Utilities Commission 



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City Coach Co., Charlotte, N. C.... 
re Transportation Co., New Bern, N 
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tic Greyhound Lines, Charleston, W. 
1-Columbia Bus Line, Tarboro, N. C 

ina Coach Co., Raleigh, N. C... 

ina Scenic Coach Lines, Spartanburg 
al Coach, Norfolk, Va.* 


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Bethel-Columbia Bus Line. 

Carolina Coach Co 

Carolina Scenic Coach Lines 

Coastal Coach Lines... 

Cox & Eggleston. 

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East Tenn. & Western N. C. Motor 

Engelhard-Washington Bus Co 

Greensboro-Fayetteville Bus Lines.. 
Independence Bus Co 


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xpress. Mount Airy, 
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xpress, Clayton, N. 
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am Motor Frt. Line, 
anoke Rapids, N. C 
N. C. Motor Trans. 




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Griffin-Coppersmith Fuel Co., Eliz; 

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press, Albemarle, N 
, Wilmington, N. C. 
Trans. Co., Wallace 
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313 



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317 






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s 




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1 






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i ^ 
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3 

w 

o 


6 


2 
to 


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o 
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bJO 

c3 






6 



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[ 






^i i i 

nil 

•<j 4) o3 e3 

<>: m u o 


1 






pq 

0) 
1 


P 


fc S a;' ^ 

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2^ g £ 

^2; o o G 


o3 

o 

c3 




a 
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3 


o3 



c3 


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g i 
III 


d 


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c3 


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1 
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Motor Vehicle Carriers — Passenger — 1935 



321 







Cl O >0 CO 


C^ lO CO CD 


CD 


-^ 


c- 


f^ 


t35 


1 „ 


O (M 


s 


C<I o 


CO CO ■*! 


Oi 






^ O o o 


O OO CD OO 




CO 


00 oa 




; ^ ■=? ^'^ 


Oi o 


p ^ o 








t^ CO CD ,-H 


OO OO OO o 


O 


(M 


M lA 


lO 


i '^ 


o c^ 


OO 


CM O 


c:^ -<T< CO 


oi 






r- i-H -cf< CD 


,-1 i-H OO ■* 


CD 


OO 


t^ lO 


CO 


1 CO »o CO 




02 -H 


lO o »o 




Kf^ X 




^^ t-. CO 








-* 


1 crs t^ c^ 


lO 


^ t- 






t^ 


^ o3 






























CD CO 1-1 


-sjT T-T 






t^ C<l 




'' CO 


CO 










^ t-l 


<NI CO 
























o 




































e© 
























^ 






IC i OS ■* 


cq 05 CO > 








^ 










o 






CO 






!>. ' "O «>; 


lo 1-; ^ ' 








^ 










p 

o 






p 


O ' i-^ O 


Oi CO ■* i 




d 


CO 1 OO CO 


CD lO 1 
t^ CO 1 








<M 










o 






CO 




?; 


O ' CO 


l-T 1 
























CO 


X 


C<l 1 r-H 


























■^ 


^ 
































H 




































*© i 








' 
















e% 


a 

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S 1 S8 


T-l CO M i 




o 


■* CO 








Ttt 


o 


i CD 




«o 




<M CO 03 1 




t-- 


05 CD 








CD 


o 






p 


O 


(B 


CD 1 (M t^ 


CD cj CO 1 




CO 


00 >o 








CO 


^ 


i o 




t- 






O 1 ^ t^ 






lO 


OO ^ 










o 


1 rjl 








'-t3 


OO p 03 CD 


t^ C!5 1 






^ CO 








(M 


1 OO 




t~ 




G 


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o T-T 1 






CD tC 








^ 


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1 1-H 




■<^ 




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CO 1 






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o§g§ 


gggs 


§ 


s 


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s 


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§ 


§s 


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OO Oi lO 


^ 






o o o> o 


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o 


o o 


CO 


1 IT 


o o 


^ 


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i-^ •>* CO 


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d 


§ s ;2 s 






o o 




. c<- 


CO o 






t- ^ tc 












^ 




CD 


1 CD T- 


lO 


lO 


t^ CO 




t^ 


X 


^ 


tC CO i-i" 


05 (N 






lo co' 




1 ■* 


y— 


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^ 




CO 




cq ^ 


























H 




























'— 1 


C3 




^ 
























s© 


1 




O O 1>- o 


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O 


o 


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O 


' C 


c 


o 


o 


CD O 


'SH o o 


o 




CO O r-; O 


O CO o o 


o 


t-; 


'^ i>: 


CD 


1 o- 


c 


o 


o 


OO CO 


OC3 02 »0 


»o 


a 


? 


CD O 05 O 


lO 02 O IC 
C^ ^ O ^ 


lO 


C5 


■>* o 


CO 


1 ir 


o o 


{^ 


O CD 


r^ ■* CO 


J^ 


O 


.i2 


§S § 8 


CM 


<M 


CO 00 


c:5 


' c 


cc 


o 




o >* 


^ s ^ 


oq 








CD 


»o CO 


CO 


i cc 




CO 




t^ CD 






































w 


T-H ^ t- 


iO cd" 






co' CO 




1 '^ 




lO 


CO 


C^{ 




■* 




O -!t< 


CO 






^ CO 
















»o 






























CO 






^ 
























s© 






^ O CD i 


(M t^ 1 1 




O 




CO 




; j^ 








O '' 


I iC 1 


CD 






oq o O > 


CO lO 1 1 




lO 




CO 




1 '^ 








CO 1 










<M OO CD 1 


O i' ' 




t^ 




CO 




i a- 








ocj ' 


1 CD 1 


CO 




6 


^ s§ : 


-tt< , 1 








CO 




1 cc 
1 '^ 








CSI 1 






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H 
































>> 




««» ! 


























s© 
































q3 




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T»< O 1 ' 




o 




CO 




! (M 








o \ 


1 \n 1 


c^ 


2 




,J1 CD CD 1 


lO CO 1 1 




»o 




CO 












CO 1 


1 '^ 1 




? 


IM OO ^ 1 


>o CO 1 1 




ir- 




o 




i' o- 








00 1 


1 CD 1 


CD 


f^ 


::i 


TH CO 1 


CO . 1 












1 CO 








oq 1 


1 t- 1 






O OO 1 


CO 1 ' 








CO 




1 '^ 










1 c^ , 






a 


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o 




H 


i 


































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1 ' cc ' 
































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; 1 H ; 
































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1 






s 


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II i^^ 


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6 




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1 c 

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1 

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V 




c Greyhound 
•Columbia Bu 
la Coach Co.. 
la Scenic Coa^ 


Eggleston.... 
oast Stages. . 
enn. & Wester 
ard-Washingt 


O 

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Pi 

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II 


Wilmington, Brunsw 
Yadkin Coach Co... 
Lincolnton Bus Co. . 


3 

o 






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Bcthel- 
Carolir 
Carolii 
Cox & 
East C 
East T. 
Engleh 


1 


03 


o 


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Oteen '. 
Queen 
Seash o 


G 


o 

s 


1 

G 


^G 'g 

'bc '5b 

> > 


H 



322 



^. C. Utilities Commission 






P5 
m 



xn 

o 

o 

3 

o 

H 

o 



1 

O 




S- 


CO C5 ^ 


^"= 






eq 


CC 


05 (M 




o- 


-* 


>fl 


C<1 


(N 


M 




CO 






s 


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i 


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6 




-g 








<M 








02 ■<*< CO 


<M 


»-l CO ^ 


s 


1 

CO 

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CO 




'^ 


5:3- 




JH O.C. 








CO 


CO 








i 


< 


6 


Si; 


§ 




§ 








I "" ^" 


g 




l§Kg 
S S i 

CO '"' 




O 


CO 










CO 


<M CO 










g 

«5 


00 

1 








00 

i 


• 

6 
<» 

3 
> 


d 


^ 


II 


§ 




1 






g 


§g§ 
s -"" sf 




■^ 05 

T-T CO ^ 


00 


1 

m 
O 










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§ 












g 


i 














2 

c 

1 

o 

> 

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- 


c 
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c 

o 

1 

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cr 

a 

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% 
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1 

03 

C 

1 


o 

•1 
1 

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§1 






c 

c 

a 

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03 

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-2 

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a 
d 

6 


c5 

or 

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c 

hi 
c 

03 


c 

a 

a, 

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a 


c 


Q 

c 

m 

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1 
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PQ 

c 

1 







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c 




> 

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3^ 

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c 
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1 





e 

s 
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a: 

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2: 
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_c 

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c 

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a 


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1 

i 

C 
a 

1 


c 
C 

c 
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c 

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t 

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a 

c 

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c 

c 

1 
1 

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p: 
c 
a. 

c 

03 

c 

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C 


& 


03 




C! 


1 

■^5 




00 

1 



Motor Vehicle Carriers — Passenger — 1935 



323 



OO i-H CO o t^ 



l>-C'OOOOlOOC<IC^OC^ 



^ o 



to CO O CO - - - - _ - 
lOlOOCqOC^IO'-l 



^ o o o oo o 
o o o oo ■<* c^ 

O O lO CO C5 05 



^ 03 CO C5 



O OO 00 CO o l>- 



cot^iooscoocoe^ 

05 <M •>*i CO ■--< CO 00 



T— I CO -^ CO lO o 






C^ t^ lO CO 



Cqc<ICO(M<MOOC<IOO-*COlO'^ 



u3 >« lo t^ cq 



•* 05 -^ t^ t~ (M CO 
CO i-H (M (M 1-t 



OOOOOOt^OlCDO'OO'* 
OC5G30COOOO>OCOC>l:^iO>0 
OOOOOJOi-lOSrtOOOcOOi 



ss 



O O <M O t>. >0 



>o 1-^ i« C<1 



O 1-H Ttl 1-H 



>Cl O 05 (M 

CO O cq lO - _ 

1— lO»0C005C0t--0>OC0 



i-H 05 OO CO lO O •* 

O «0 t^ 1-1 CO o »o 

- — - ^ O 05 



^OIMOOCOIMCOO 
OOlMOOCOOiOO 
TflOlOOlOCOOOCOOO 



I^ CO 0> 05 <M 05 



»0 rt lO ^ lO c^ 



a; b 
'-I ^ 
O o 



m ■^ 



O 02 



• S ;S ^ O H 

O O ^ -u< -►^ 



<n 

3 
O rn 

go 
-Si 



2 ^^ 



c2 ^ 






-►3 <U 

a o 

i w 

o <t> 



<J w o o o w 



o 2 

12; o o o* m CO 



CD O 



o 

03 S 

•l g 

3 OS 
O (In 






- (U 3 

la- 

a o -r 

g cl d o 
(D -S pq -£3 



Q CQ 






> 5 B >H 3 



324: 



'N. C. Utilities CoMiMissioisr 



oo oo CO o 



kO O ■— I Csl 



a> o CO CO 

CO -tl »0 CO 



^ CO oo t^ 

■<*• <M O CO 



<M O O «5 



s 

11 1 1 1 1 x*! 


CO I '< 















o 




CO 




s 


r^ 
































■^ 


















CO 




o 




1 ,—1 


f^ 


cq 


(— , 


t^ 


CO 


CO 


o 


CSl 


o 


CO 


CO 


t^ 


1 ,-H 


,_, 


-+I 


f^ 


<— > 


»o 1 








































■^ 


■* 


UJ 


'-I 






00 


Oi 






















i 










CO 






^ 


CO 


CO 






1 ^ 






C<l 







^s 


o 


^s^ 


s 


^ 


s 


§ 


oo 


a> 


?^ 


K 


CO 


CO (M 

CO ^ 


S 


^^ 


§22S 


§ 


" Oi 


1 


i i S^ 


^. 


(M 




1 




^ 


1 


^, 


i 


oo <>a 


1 


s§ 


t^ O CO 


o 



CO 00 oo c^ 



CO (M CSl 05 oo 



3 ^ O CO 
CO OO O 


S§3 


00 ■* 


oo 

05 


8 


s 


§ 


?^f2 


oo 


CO 
02 


s 


s 


^§ss 


s 


s 


1 1 1 ^. 


lg 


ii 


oo 

CO 


i 


i 


oo 


O M 

oo lO 


1 


i 


c^ 


1 


§ i s i 


CO 


CO 



oo oo oo ■* --I 



oo 02 CO o 



O Tf< lO 


CO 


§12 SS 


g 


^S 


05 


i-H CO (M -<H cr> ■>*< 

i« OO o CO ^ -rt< 


t^ CO o 

^ CO 02 


CO CO 
oo c^q 


oo ^ 


:i O CO 


CO 


1 1 1 


^ 


S^ 


1 


oo r- CO r-( lO t^ 

>-H 00 105 oo oo oo 
0> CO — 1 Oi ^ Oi 


isi 


11 


rH CO 



CO CO O CO UO 05 <M 



CO 05 <NI 0> t^ 



l^ 


s 


CO 


g 


»o 


s 


§ 


?5 


8 


oo lo 


^ 


o 


g 


lO 


5 


t^ CO 


o 


c^ 


s 


g 


CO 


\s 


^ 


1 


i 


i 


CO 


05 




i 


!>. oo 


1^ 

CO 


CO 

2 


^ 


o 


1 




i 


i 


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i 





1— I »o t^ O -"ti -^ 
rt oo M t-l (M 



o 

to" r-, ' 

>^ >> S ' 

^- § ^ i 

o cr .5 ,^ 

- n » 5 

>j; X t< O 

^ "S ^ iJ 



CO rC 



. o 



• CO I 

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^' a' i 



2 A 6^ 



• -is ►^ oj 



-so ^ 



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-go 

> X (O § 

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O c3 . 

2 si S3 

nil 

op r=a 

^ ^ -^ g 
=a ei ■> -S 



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o • 



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W O O O Q Q H 



H 


g 




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is 


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c 



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12; o o 

d « ^" 

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CO <*-■ ft 

03 M X 

'H CO O 

s s s 



Motor Vehicle Carriers — Freight — 1935 



325 



lO o> O ->*i 
<a2 lO I^ 00 



O OS 0> lO 



CO CO O C<l o 
CO t^ CO "-H o 



CD t— I 05 O 00 
•<*< t^ 03 •»*< •*! 
CO O (M O C<l 



(M O CO CO 
CO ^ ^ CO 



lO 05 O CO 

1-1 t^ t^ CO 

■>*( t^ 05 t^ 

i-T oo CO 



CO CO O ^ 00 
CO t--; CO iq C<1 

so 1—1 03 CO CO 



O OO -"tl CO 



05 O OO 03 



lO 05 oo t^ 
C<1 CO t^ c^ 



C<l "-H r-l I^ 



■*! O OO CO 

»o CO Tt< t^ 
^ o lo 



T-l 05 O 04 CO 



lO 05 00 I^ 



ira CO <N 

iC 00 CO 
C^ lO (M 



O -H CO rt 



^ ^ 05 CO O 
Oq ^ <-l 05 cs 



^';2; 



a; 


d 


o 




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J 
1 


r, 


o 


^ 


ri 





CO 




o 




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_C 


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C/J 


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c\i 


X 


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s 










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> a tH t^ 

b S ^ ^ 

(-1 S -fi ~ 

-ti e3 O t: 

- (D g 

- cs a O 

.S .fc: -^ c« 



326 



N. C. Utilities Commission 



M 

w 
O 

o 

3 

o 

H 
O 



t:3 
1 

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o 




CO 


e^ 


CO 


CO 


»o 


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cq 


C<i 


CO 




1^ 


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IC 


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CO 


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<M 






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lO CO cq CO 


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d 


CO <M -* lO i« »« 






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CO lO T-H T-H 


t^ ,-1 


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1 

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o 








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c^ 
















1 


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as o o o o in 

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t>r ^ CO i>r ^'' CO 


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at 

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t^ i-T CO .-H CO c<r 


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a 

p: 


if 

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Motor Vehicle Carriers — Freight — 1935 



327 



t^ N I N 1-1 1 l-H 



CI t^ 

II 

cp to 

H Eh 



O 

.2 S 

a u 



Q S 



> > ^ 



328 



]^. C. Utilities Commission- 






O 

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o 

s 

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s 


s 


^ 


8 


s 


o 


o 


q 


8 


s? 


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c^ 


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cc 


p 


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CO 

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oo 


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o> 


lO 


CO 


^ 


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CO 


iO 


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l>- o 


kO 


05 oo CO o 


o «o 


o 


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o o> 




CO 


JO 


t^ 






oo 


05 




lO ^ 


t^ 


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c^ 


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Motor Vehicle Careiers — Freight — 1935 



329 



'— I lo i-H c«; CO lo 



O CO O CO O •>-; 
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3 .S .tl -5 cS 

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330 



^. C. Utilities Commission 



eoOOOOOJOOt^ 
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50C0OOOC0OOC0 



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CC OO «0 <M 

ci o «o r^ 



O O OO O 05 CO 

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Motor Vehicle Careiers — Freight — 1935 



331 



120,000 
100,000 
29,280 

13,400 
90,000 
33,100 


1 


120,000 
125,000 
86,270 

13,400 
129,000 
33,100 




g 2 § ; § ^2 ^ 1 




O OO »0 1 O -I* CO 1 

o. r^ o. ; o o. ^ 1 




6,000,000 

18,055,537 

538,000 

900,000 

1,200,000 

454,941 


Ttl 


6,000,000 
27,083,305 
2,692,000 

900,000 

1,500,000 

454,941 


OO 

i 

i 


311.34 
200 .00 

53.84 


o 

CO 
6© 


311.34 
660 .93 

69.48 

$14,778.71 


101 .59 

2,450.00 

80.00 

126.96 

674 .00 

219.24 

68.50 


OO 

i 


101 .59 

2,450.00 

517.62 

126.96 

870.00 

219.24 

68.50 




19.75 
997.73 

25.00 

55.46 

4.50 


*>; 

CO 
OO 


19.75 
997.73 

25.00 
71.57 
4.50 


CO 
o 


1,155.32 

4,276.99 

^ 218.96 

98.41 
235.80 
329.21 

43.87 


i 


Stallings Transfer Service-. _ 

Smith's Transfer 

Turner Motor Lines 

Thurston Motor Lines .-. 

Vinson, J. L.. 

Virginia Dare Trans. Co 

Winston-Elkin Mo. Exp 

Yates, G. B..... 


'3 



332 



^N". C. Utilities Commission 



POWER COMPANIES 




Capacity 




Hydro 
K.V.A. 


Entire: 
Carolina Power and Light Co. - 


205,450 


Duke Power Co. . -- 


518,930 


Durham Public Service Co. _ 




East Tennessee Light and Power Co. . . .. 


3,875 


Southern Public Utilities Co. 


85,229 


Tide Water Power Co. .._ _ . ... 






28,220 






Totals 


841,704 






North Carolina: 
Carolina Power and Light Co. 


202,450 


Duke Power Co. . 


140,455 


Durham Public Service Co. . . 




East Tennessee Light and Power Co. . . . .. .. .. 


75 


Southern Public Utilities Co. .. . . ... .. . 


64,389 


Tide Water Power Co. .-. . ..... . 






5,720 






Totals -- 


416,089 






South Carolina: 
Carolina Power and Light Co. . 




Duke Power Co - - 


378,475 


Southern Public Utilities Co. . . ... 


20,840 






Totals - . - - 


399,315 






Tennessee: 


3,800 






Virginia: 
East Tennessee Light and Power Co 




Virginia Electric and Power Co 


22,500 







Power Companies — Major — 1934 



333 



MAJOR - 


-1934 








Power Plants 


Energy Generated 


Steam* 
K.V.A. 


Total 
K.V.A. 


Hydro 
K.W.H. 


Steam 
K.W.H. 


Total 
K.W.H. 


43,000 

239,344 

3 100 


248,450 
858,274 
3,100 
3,925 
85,979 
13,080 
155,722 


620,862,825 
1,028,379,990 




620,862,825 


81,018,410 

354,200 

820 

8,880 

13,342,010 

287,526,230 


1,109,398,400 
354,200 


50 

750 

13,080 

127,502 


12,740,944 
199,178,631 


12,741,764 

199.187,511 

13,342,010 


131,059,326 


418,585,556 


526,826 


1,368,530 


1,992,221,716 


382,250,550 


3,374,472,266 


43 , 000 


248,450 
442,299 
3,100 
75 
64,389 
13,080 
9,312 


620,862,825 
277,820,690 




620,862,825 


301,844 
3,100 


64,914,410 
354,200 


342,735,100 
354,200 




1,480 
114,666,099 


1,480 






114,666,099 


13,080 


13,342,010 
300 


13,342,010 


3,592 


40,347,540 


40,347,840 


364,616 


780,705 


1,053,698,634 


78,610,920 


1,132,309,554 












37,500 
750 


415,975 
21,590 


750,559,300 
84,512,532 


16,104,000 

8,880 


766,663,300 
84,521,412 


38,250 


437,565 


835,071,832 


16,112,880 


851,184,712 


50 


3,850 


12,739,464 


820 


12,740,284 












123,910 


146,410 


90,711,786 


287,525,930 


378,237,716 



334 



^. C. Utilities Commission 



Power Companies — 




Generated 

and 
Purchased 


Entire: 
Carolina Power and Light Co. - 


1,103,009,125 
1,556,749,350 


Duke Power Co 


Durham Public Service Co. ... 


26,846,560 
19,498,964 

513,354,401 
49,253,250 

520,749,516 


East Tennessee Light and Power Co 


Southern Public Utilities Co . . 


Tide Water Power Co. 






Totals - - - - 


3,789,461,166 




North Carolina: 
Carolina Power and Light Co. . _ _ 


933 285 125 


Duke Power Co 


625,492,084 

26,846,560 

1 480 


Durham Public Service Co. -. - . 


East Tennessee Light and Power Co. . . . _ _ 


Southern Public Utilities Co. -- - . . 


363 587 813 


Tide Water Power Co 


49 253 250 




129,853,000 




Totals - - - 


2,128,319,312 






South Carolina: 


169,724,000 


Duke Power Co. .-. 


931,257,266 


Southern Public Utilities Co 


149,766,588 




Totals - --- 


1,250,747,854 






Tennessee: 
East Tennessee Light and Power Co. ... ... _ . 


19,497,484 






Virginia: 






390,896,516 






Totals - 


390,896,516 







PowEK Companies — Major — 1934 



335 



Major — 1934 — Continued 



By Transfer 


Total 


Transferred 


Unaccounted 
For 


Used by 
Company 


Sold 


74,461,602 
392,525,077 


1,177,470,727 
1,949,274,427 
26,846,560 
28,162,084 
513,354,401 
49,253,250 
609,493,968 


74,461,602 
392,525,077 


171,007,698 
217,861,185 
2,798,691 
3,139,436 
52,902,014 
7,368,830 
70,237,384 


1,510,095 
23,989,868 

1,387,254 
510,035 

1,042,315 

2,132,521 
31,720,924 


930,491,332 

1,314,898,297 

22,660,615 


8,663,120 


8,663,120 


15,849,493 
459,410,072 






39,751,899 


88,744,452 


88,744,452 


418,791,208 


564,394,251 


4,353,855,417 


564,394,251 


525,315,238 


62,293,012 


3,201,852,916 


74,461,602 
392,525,077 


1,007,746,727 
1,018,017,161 
26,846,560 
336,280 
363,587,813 
49,253,250 
150,251,347 




149,018,087 

148,275,645 

2,798,691 

142,470 

31,672,440 

7,368,830 

28,254,098 


1,138,000 

20,946,380 

1,387,254 


857,590,640 
848,795,136 
22,660,615 






234 800 




193,810 






781,101 

2,132,521 

680,045 


331,134,272 






39,751,899 


20,398,347 


68,346,105 


52,971,099 


487,719,826 


2,616,039,138 




367,530,261 


27,065,301 


2,153,097,471 






169,724,000 
931,257,266 
149,766,588 


74,461,602 
392,525,077 


21,989,611 
69,585,540 
21,229,574 


372,095 

3,043,488 

261,214 


72,900,692 




466,103,161 




128,275,800 










1,250,747,854 


466,986,679 


112,804,725 


3,676,797 


667,279,653 








19,497,484 


8,663,120 


1,865,103 


510,035 


8,459,226 






8,328,320 


8,328,320 
459,242,621 




1,131,863 
41,983,286 




7,196,457 


68,346,105 


20,398,347 


31,040,879 


365,820,109 


76,674,425 


467,570,941 




43,115,149 




373,016,566 











336 



iSJ^. C. Utilities Co:\r:\iissiox 



Power Companies — 
revenue segregated 





Electric 


Gas 


Street 
Railway 


Buses 


Entire: 
Carolina Power and Light Co 


$ 9,217,356.48 

14,166,794.88 

818,779.58 

570,968.51 

10,528,412.57 

1,176,021.61 

10,093,206.55 


$ 


$ 102,919.60 


$ ''H 285 36 


Duke Power Co. .. .-. . ... 












192,088.09 


East Tenn. Light and Power Co 


82,354.34 

1.203,294.14 

324,538.82 

894,174.80 






Southern Public Utilities Co 


986,681.85 

110,994.46 

2,406,173.40 


* 


Tide Water Power Co. 






1 649 737 35 






Totals . . 


$ 46,571,540.18 


$2,504,362.10 


$3,606,769.31 


$ 2 056,110 80 






North Carolina: 


$ 7,499,612.03 

9,611,417.88 

818,779.58 

14,603.94 

7,874,296.79 

1,176,021.61 

853,204.48 


$ 


$ 102,919.60 


$ 214.285.36 


Duke Power Co 












192,088.09 


East Tenn. Light and Power Co. - 








Southern Public Utilities Co 


935,470.16 
324,538.82 


760,557.34 
110,994.46 


* 


Tide Water Power Co 




Virginia Electric and Power Co 













Totals 


$ 27,847,936.31 


$1,260,008.98 


$ 974,471.40 


$ 406,373.45 






South Carolina: 
Carolina Power and Light Co. - 


$ 1,717,744.45 
4,555,377.00 
2,654,115.78 


$. .. 


$- 


$. 










Southern Public Utilities Co. -- 


267,823.98 


226,124.51 


* 






Totals .- 


$ 8,927,237.23 


$ 


$ 


$ 










Tennessee: 
East Tenn. Light and Power Co 


$ 348,224.47 


$ 48,666.77 


$ 


$ 






Virginia: 

East Tenn. Light and Power Co 

Virginia Electric and Power Co. . 


$ 208,140.10 
9,240,002.07 


$ 33,687.57 
894,174.80 


$- 


$. 


2,406,173.40 


1.649,737.35 






Totals 


$ 9,448,142.17 


$ 927,862.37 


$ 


f 









Power Companies — Majok — 1934 



337 



Majoe — 1934 — Continued 

AS TO CLASS OF SERVICE 



Water 


Merchandise 


Leased 
Prop- 
erty 


Ice 


Total 
Operating 


Total 
Non- 
Operating 
and Leased 
Property 


Total Revenue 


s 


$ 832,392.96 


$ 


$ 


$ 10,366,954.40 
14,166,794.88 
1,285,495.02 
765,270.70 
14,211,607.86 
1,782,919.41 
15,294,405.90 


$ 35,388.20 
1,481,221.57 
23,219.89 
59,422.75 
33,187.88 
10,204.70 
45,169.32 


$ 10,403,342.60 








15,648,016.45 




140,968.09 
111,947.85 
1,362,743.02 
143,019.12 
251,113.80 




133,659.26 


1,308,714.91 






824,693.45 


130 476 28 






14,244,795.74 


28 345 40 






1,793,124.11 








15,339,575 22 










$158,821.68 


$ 2,842,184.84 


$ 


$133,659.26 


$ 57,873,448.17 


$ 1,687,814.31 


$ 59,561,262.48 








$ 


$ 599,479.85 


$ 


$ 


$ 8,416,296.84 

9,611,417.88 

1,285,495.02 

14,603.94 

10,574,641.74 

1,782,919.41 

875,630.31 


$ 28,310.56 

1,317.122.45 

23,219.89 

1,521.22 

25,309.07 

10,204.70 


$ 8,444,607.40 








10,928,540.33 




140,968.09 




133,659.26 


1,308,714.91 




16,125.16 


32,016.46 


972,300.99 
143,019.12 
22,425.83 






10,599,950.81 


28,345.40 






1,793,124.11 








875,630.31 












1 60,361.86 


$ 1,878,193.88 


% 


$133,659.26 


$ 32,561,005.14 


$ 1,405,687.89 


$ 33,966,693.03 








$ 


$ 232,913.11 


$ 


$ 


$ 1,950,657.56 
4,555,377.00 
3,636,966.12 


$ 7,077.64 
164,099.12 

7,878.81 


$ 1 957,735.20 








4,719,476.12 


98,459.82 


390,442.03 






3,644,844.93 










$. 


$ ,623,355.14 


$ 


$ 


$ 10,143,000.68 


$ 179,055.57 


$ 10,322,056 25 










$. 


$ 89,558.28 


$ 


$ 


$ 486,449.52 


$ 36,241.93 


$ 522,691.45 










%... 


$ 22,389.57 
228,887.97 


S- 


$ 


$ 264,217.24 
14,418,775.59 


$ 21,659.60 
45,169.32 


$ 285,876.84 








14,463,944.91 










1 


$ 251,077.54 


$- 


$ 


$ 14,682,992.83 


$ 66,828.92 


$ 14,749,821.75 











338 



IS'. C. Utilities Commission 



Power Companies — 
expenses as to 





Electric 


Gas 


Street 
Railway 


Buses 


Water 


Entire: 
Carolina Power & Light 


$ 7,666,721.71 

12,851,857.86 

781,675.57 

599,929.34 

9,354,187.85 

975,099.84 

7,762,916.80 


$ 


$ 121,976.06 


$ 254,114.52 


$ 








Durham Public Service 






205,335.74 




East Tenn. Lt. and Power- 


104,649.34 

1,194,012.05 

344,417.73 

839,441.72 






Southern Public Utilities 


1,373,070.36 

136,205.44 

2,261,525.25 


* 


129,337 23 


Tide Water Power Co. 




24,322.22 


Virginia Elec. and Power... 


1,554,843.75 








Totals ... -- 


$ 39,992,388.97 


$2,482,520.84 


$3,892,777.11 


$2,014,294.01 


$ 153,659.45 






North Carolina: 
Carolina Power & Light 


$ 6,133,377.36 

7,534,895.28 

781,675.57 

15,358.19 

6,980,270.22 

975,099.84 

826,872.95 


$. 


$ 121,976.06 


$ 254,114.52 


$ 






Durham Public Service 






205,335.74 




E Tenn Light & Power 








Southern Public Utilities 


871,684.67 
344,417.73 


1,017,365.16 
136,205.44 


* 


53,714.32 


Tide Water Power Co. 




24,322.22 


Virginia Elec. & Power. 
















Totals 


% 23,247,549.41 


$1,216,102.40 


$1,275,546.66 


$ 459,450.26 


$ 78,036.54 






South Carolina: 


$ 1,533,344.35 
5,316,962.58 
2,373,917.63 


$ 


$ 


$ 


$ 












Southern Public Utilities 


322,327.38 


355,705.20 


* 


75,622.91 








Totals 


$ 9,224,224.56 


$ 322,327.38 


$ 355,705.20 


$ 


$ 75,622.91 








Tennessee: 
E. Tenn. Light & Power.... 


$ 365,896.92 


$ 61,847.76 


$- 


$- 


$ 








Virginia: 
E. Tenn. Light & Power.... 
Virginia Elec. and Power.. . 


$ 218,674.23 
6,936,043.85 


$ 42,801.58 
839,441.72 


$ 


$ 


$ 


2,261,525.25 


1,554,843.75 




Totals 


$ 7,154,718.08 


$ 882,243.30 


$ 261,525.25 


$1,554,843.75 


$ 







Note. — Boldface figures indicate deficit. 



Power Companies — Major — 1934 



389 



Major — 1934 — Continued 

CLASS OF SERVICE 



Merchandise 


Leased 
Property 


Ice 


Total 
Operating 


Non- 
Operating 


Total 
Expenses 


Net 
Income 


$ 757 549 10 


$204,955.05 


$. 


$ 9,005,316.44 

12,851,857.86 

1,262,610.47 

817,855.31 

13,264,956.03 

1,612,281.46 

12,627,857.48 


$ 61.01 
12,093.78 


$ 9,005,377.45 

12,863,951.64 

1,262,610.47 

817,855.31 

13,264,956.03 

1,612,281.46 

12,632,022.23 


% 1,396,965.15 






2,784,064.81 


138 764 19 




136,834.97 


46,104.44 


113,276.63 
1 189 348 54 






6,838.14 


25,000.00 






979,839.71 


132,236 23 






180,842.65 


209,129.96 






4,164.75 


2,707,552.99 










% 2,540,304.65 


$229,955.05 


$136,834.97 


$ 51,442,735.05 


$ 16,319.54 


$ 51,459,054.59 


$ 8,102,207.89 


S 547,913.92 


$204,955.05 


$- 


$ 7,262,336.91 
7,534,895.28 
1,262,610.47 
15,358.19 
9,793,598.59 
1,612,281.46 
845,795.81 


$ 48.81 
10,753.78 


$ 7,262,385.72 
7,545,649.06 
1,262,610.47 
15,358.19 
9,793,598.59 
1,612,281.46 
845,795.81 


S 1,182,221.68 






3,382,891.27 


138,764.19 




136,834.97 


46,104.44 








766 .77 


851,499.22 


19.065.00 




806,352.22 


132,236.23 






180,842.65 


18,922.86 








29,834.50 












$ 1,689,336.42 


$224,020.05 


$136,834.97 


$ 28,326,876.71 


$ 10,802.59 


$ 28,337,679.30 


$ 5,629,013.73 


% 209,635.18 


$- 


$- 


$ 1,742,979.53 
5,316,962.58 
3,471,357.44 


$ 12.20 
1,340.00 


$ 1,742,991.73 
5,318,302.58 
3,471,357.44 


$ 214,743.47 








598,826.46 


337,849.32 


5,935.00 




173,487.49 










$ 547,484.80 


$ 5,935.00 


$ 


$ 10,531,299.55 


$ 1,352.20 


$ 10,532,651.75 


$ ?10,595.5Q 


% 90,621.30 


$- 


$. _. 


$ 518,365.98 


$. 


$ 518,365.98 


$ 4,325.47 












$ 22,655.33 


$ 


$ 


$ 284,131.14 
11,782,061.67 


$.- 


$ 284,131.14 
11,786,226.42 


$ 1,745.70 


190,207.10 






4,164.75 


2,677,718.49 


$ 212,862.43 


$ 


$ 


$ 12,066,192.81 


$ 4,164.75 


$ 12,070,357.56 


$ 2,679,465.19 











340 



IST. C. Utilities Commission 



Power Companies — 
expenses 





Direct 
Operating 


Uncol- 
lectibles 


Taxes 


Entire: 


$ 4,359,287.99 

4,948,471.41 

867,907.67 

424,058.84 

8,969,971.04 

896,968.70 

6,986,407.28 


$ 115,666.94 

11,966.21 

8,025.00 

7,200.00 

51,473.14 

13,195.42 

115,622.47 


$ 1,204,286 68 


Duke Power Co 


2,465,000 00 


Durham Public Service Co. 


126 379 45 


East Tennessee Light and Power Co. - 


67 469 54 


Southern Public Utilities Co. 


1 524 528 97 


Tide Water Power Co. - 


211 790 67 




1,811 196 00 






Totals -- - - 


$ 27,453,072.93 


$ 323,149.18 


f 7,410,651 31 






North Carolina: 


$ 3,519,086.13 

2,943,159.12 

867,907.67 

6,702.94 

6,639,064.20 

896,968.70 

416,209.47 


$ 92,438.41 
7,179.72 
8,025.00 
153 .60 
39,080.37 
13,195.42 
8,960.74 


$ 967,867.37 




1,190,117.86 




126,379.45 


East Tennessee Light and Power Co. - 


1 557 45 


Southern Public Utilities Co 


1,097,409 48 


Tide Water Power Co 


211,790.67 




104,138 97 






Totals -- 


$ 15,289,098.23 


$ 169,033.26 


$ 3,699,261.25 






South Carolina: 


$ 840,201.86 
2,005,312.29 
2,330,906.84 


$ 23,228.53 
4,786.49 
12,392.77 


$ 236,419.31 


Duke Power Co. .-. - - 


1,274,882.14 


Southern Public Utilities Co. - -- 


427,119.49 






Totals -.. -. - 


$ 5,176,420.99 


$ 40,407.79 


S 1,938,420.94 






Tennessee: 
East Tennessee Light and Power Co. - . .- 


$ 279,242.24 


$ 4,368.60 


% 41,024.34 






Virginia: 


$ 138,113.66 
6,570,197.81 


$ 2,677.80 
106,661.73 


$ 24,887.75 




1,707,057.03 






Totals --- --- 


$ 6,708,311.47 


$ 109,339.53 


% 1,731,944.78 







Note.— Boldface indicates deficit. 



Power Companies— Major — 1934 



341 



Major — 1934 — Continued 

SEGREGATED 



Interest, 
etc. 


Retirement 
Reserve 


Total 


Non- 
Operating 


Total 
Expenses 


N(>t 
Income 


$ 2,366,074.83 

1,856,850.71 

164 298 35 


$ 960,000.00 

3,569,569.53 

96,000.00 

60,000.00 

1,542,321.82 

130,150.44 

1,796,000.00 


$ 9,005,316.44 
12,851,857.86 
1,262,610.47 
817,855.31 
13,264,956.03 
1,612,281.46 
12,627,857.48 


$ 61.01 
12,093.78 


$ 9,005,377.45 

12,863,951.64 

1,262,610.47 

817,855.31 

13,264,956.03 

1,612,281.46 

12,632,022.23 


$ 1,396,965.15 

2,784,064.81 

46,104.44 


259,126.93 
1 176 661 06 




6,838.14 




979,839.71 


360,172.23 
1,918,631.73 


4,164.75 


180,842.65 
2,707,552.99 


$ 8,101,815.84 


$ 8,154,041.79 


$ 51,442,735.05 


$ 16,319.54 


$ 51,459,054.59 


$ 8,102,207.89 


$ 1,908,570.60 

1,161,460.12 

164,298.35 


$ 774,374.40 

2,232,978.46 

96,000.00 

1,305.60 

1,140,020.06 

130,150.44 

153,019.20 


$ 7,262,336.91 
7,534,895.28 
1,262,610.47 
15,358.19 
9,793,598.59 
1,612,281.46 
845,795.81 


$ 48.81 
10,753.78 


$ 7,262,385.72 
7,545,649.06 
1,262,610.47 
15,358.19 
9,793,598.59 
1,612,281.46 
845,795.81 


$ 1,182,221.68 

3,382,891.27 

46,104.44 


5,638.60 
878,024.48 




766 .97 
806,352.22 


360,172.23 




180,842.65 


163,467.43 




29,834.50 








$ 4,641,631.81 


$ 4,527,848.16 


$ 28,326,876.71 


$ 10,802.59 


$ 28,337,679.30 


$ 5,629,013.73 


$ 457,504.23 
695,390.59 
298,636.58 


$ 185,625.60 

1,336,591.07 

402,301.76 


$ 1,742,979.53 
5,316,962.58 
3,471,357.44 


$ 12.20 
1,340.00 


$ 1,742,991.73 
5,318,302.58 
3,471,357.44 


$ 214,743.47 

598,826.46 

73,487.49 








$ 1,451,531.40 


$ 1,924,518.43 


$ 10,531,299.55 


$ 1,352.20 


$ 10,532,651.75 


$ 210,595.50 


$ 157,306.90 


$ 36,423.90 


$ 518,365.98 


$ 


$ 518,365.98 


$ 4,325.47 








S 96,181.43 


$ 22,270.50 
1,642,980.80 


$ 284,131.14 
11,782,061.67 


$ 


$ 284,131.14 
11,786,226.42 


$ 1,745.70 


1,755,164.30 


4,164.75 


2,677,718.49 


S 1,851,345.73 


$ 1,665,251.30 


$ 12,066,192.81 


$ 4,164.75 


$ 12,070,357.56 


$ 2,679,464.19 



342 



^. C. Utilities Commission- 



Power Companies- 
expenses- 





Direct 
Operatory 


Uncollectible 


Entire: 


$ 3,205,047.17 

4,948,471.41 

479,331.52 

261,833.54 

5,965,121.90 

452,266.38 

3,770,375.43 


$ 113,464.09 


Duke Power Co. 


11,966.21 




4,800.00 


East Tennessee Light and Power Co 


6 000 00 


Southern Public Utilities Co 


31,615 06 


Tide Water Power Co . . .. 


8,774 98 


Virginia Electric and Power Co. - ... 


99,874 57 






Totals - - - 


$ 19,082,447.35 


$ 276,494.91 






North Carolina: 


$ 2,564,037.73 

2,943,159.12 

479,331.52 

6,702.94 

4,491,639.85 

452,266.38 

397,735.13 


$ 90,771.27 


Duke Power Co. -.- - - ..- 


7,179.72 




4,800.00 


East Tennessee Light and Power Co 


153 60 


Southern Public Utilities Co.... .. .. 


24,178.92 


Tide Water Power Co - --- -.- 


8,774.98 


Virginia Electric and Power Co 


8,512.22 






Totals -- - -- 


$ 11,334,872.67 


$ 144,370.71 






South Carolina: 
Carolina Power and Light Co. - 


S 641,009.44 
2,005,312.29 
1,473,482.05 


$ 22,692.82 


Duke Power Co. -- - -- 


4,786.49 


Southern Public Utilities Co. . --. -.. 


7,436.14 






Totals . - -. -. - 


$ 4,119,803.78 


$ 34,915.45 






Tennessee: 

East Tennessee Lght and Power Co. 


$ 159,692.28 


$ 3,659.40 






Virginia: 


$ 95,438.32 
3,372,640.30 


$ 2,187.00 


Virginia Electric and Power Co. -- - 


91,362.35 






Totals -_ --- .. -- -- -- - 


$ 3,468,078.62 


$ 93,549.35 







Note. — Boldface indicates deficit. 



Pov^ER Companies — Major — 1934 



Major — 1934 — Continued 

ELECTRIC 



Taxes 


Interest, 
etc. 


Retirement 
Reserve 


Total 
Expenses 


Total 
Revenue 


Profit 


$ 1,132,561.30 

2,465,000.00 

112,732.22 

60,837.90 

1,184,560.68 

154,475.52 

1,222,218.04 


$ 2,287,521.15 
1,856,850.71 
116,651.83 
220,257.90 
964,391.40 
258,315.54 
1,379,304.36 


$ 928,128.00 

3,569,569.53 

68,160.00 

51,000.00 

1,208,498.81 

101,267.42 

1,291,144.40 


$ 7,666,721.71 

12,851,857.86 

781,675.57 

599,929.34 

9,354,187.85 

975,099.84 

7,762,916.80 


$ 9,217,356.48 

14,166,794.88 

818,779.58 

570,968.51 

10,528,412.57 

1,176,021.61 

10,093,206.55 


$ 1,550,634.77 

1,314,937.02 

37,104.01 

28,960.83 

1,174,224.72 

200,921.77 

2,330,289.75 


$ 6,332,385.66 


$ 7,083,292.89 


$ 7,217,768.16 


% 39,992,388.97 


$ 46,571,540.18 


$ 6,579,151.21 


$ 906,049.04 
1,190,117.86 
112,732.22 
1,557.45 
842,785.22 
154,475.52 
104,138.97 


% 1,830,016.92 
1,161,460.12 
116,651.83 
5,638.60 
719,763.57 
258,315.54 
163,467.43 


S 742,502.40 

2,232,978.46 

68,160.00 

1,305.60 

901,902.66 

101,267.42 

153,019.20 


$ 6,133,377.36 

7,534,895.28 

781,675.57 

15,358.19 

6,980,270.22 

975,099.84 

826,872.95 


$ 7,499,612.03 

9,611,417.88 

818,779.58 

14,603.94 

7,874,296.79 

1,176,021.61 

853,204.48 


$ 1,366,234.67 

2,076,522.60 

37,104.01 

754.25 

894,026.57 

200,921.77 

26,331.53 


$ 3,311,856.28 


S 4,255,314.01 


$ 4,201,135.74 


$ 23,247,549.41 


1 27,847,936.31 


$ 4,600,386.90 


$ 226,512.26 

1,274,882.14 

341,775.46 


$ 457,504.23 
695,390.59 
244,627.83 


$ 185,625.60 

1,336,591.07 

306,596.15 


$ 1,533,344.35 
5,316,962.58 
2,373,917.63 


$ 1,717,744.45 
4,555,377.00 
2,654,115.78 


$ 184,400.10 
761,585.58 
280,198.15 


$ 1,843,169.86 


1 1,397,522.65 


$ 1,828,812.82 


$ 9,224,224.56 


S 8,927,237.23 


$ 296,987.33 


$ 37,105.04 


$ 134,335.30 


$ 31,104.90 


$ 365,896.92 


$ 348,224.47 


$ 17,672.45 


$ 22,175.41 
1 1,118,079.07 


$ 80,284.00 
1,215,836.93 


$ 18,589.50 
1,138,125.20 


$ 218,674.23 
6,936,043.85 


1 208,140.10 
9,240,002.07 


$ 10,534.13 
2,303,958.22 


$ 1,140,254.48 


$ 1,296,120.93 


$ 1,156,714.70 


$ 7,154,718.08 


$ 9,448,142.17 


$ 2,203,424.09 



344 



^. C. Utilities Commission 



Power Companies- 
expenses- 





Direct 
Operating 


UncoUectibles 


Entire: 
East Tennessee Light and Power Co. - - __ 


$ 48,948.67 
749,223.46 
205,400.12 
452,437.29 


$ 1,200 00 


Southern Public Utilities Co. - -- --. ..- - .. 


6,805.07 


Tide Water Power Co. - _ -.. --- - 


2,420.49 




10,725.62 






Totals. . - - .- - - - - - 


$ 1,456,009.54 


$ 21,151.18 






North Carolina: 
Southern Public Utilities Co. - .-. 


$ 531,375.10 
205,400.12 


$ 5,640.19 


Tide Water Power Co. 


2,420.49 






Totals 


$ 736,775.22 


$ 8,060.68 






South Carolina: 
Southern Public Utilities Co... 


$ 217,848.36 


$ 1,164.88 






Tennessee: 
East Tennessee Light and Power Co. . __. . .. 


$ 28,928.66 


% 709 .20 






Virginia: 


$ 20,020.01 
452,437.29 


$ 490 .80 


Virginia Electric and Power Co. . 


10,725.62 






Totals 


$ 472,457.30 


$ 11,216.42 







Note. — Boldface indicates deficit. 



Power Companies — Major — 1934 



145 



Major — 1934 — Continued 

GAS 



Taxes 


Interest, 
etc. 


Retirement 
Reserve 


Total 
Expenses 


Total 
Revenue 


Profit 


1 6,631.64 
146,729.74 
40,225.25 
99,910.21 


$ 38,869.03 
113,547.79 
71,278.08 
142,746.20 


% 9,000.00 
177,705.99 
25,093.79 
133,622.40 


$ 104,649.34 

1,194,012.05 

344,417.73 

839,441.72 


$ 82,354.34 

1,203,294.14 

324,538.82 

894,174.80 


$ 22,295.00 

9,282.09 

19,878.91 

54,733.08 


$ 293,496.84 


$ 366,441.10 


$ 345,422.18 


$ 2,482,520.84 


$ 2,504,362.10 


$ 21,841.26 


$ 108,305.81 
40,225.25 


$ 88,249.58 
71,278.08 


% 138,113.99 
25,093.79 


$ 871,684.67 
344,417.73 


$ 935,470.16 
324,538.82 


$ 63,785.49 
19,878.91 


$ 148,531.06 


$ 159,527.66 


$ 163,207.78 


$ 1,216,102.40 


$ 1,260,008.98 


$ 43,906.58 


$ 38,423.93 


$ 25,298.21 


S, 39,592.00 


$ 322,327.38 


$ 267,823.98 


$ 54,503.40 


$ 3,919.30 


$ 22,971.60 


$ 5,319.00 


$ 61,847.76 


$ 48,666.77 


$ 13,180.99 


$ 2,712.34 
99,910.21 


$ 15,897.43 
142,746.20 


$ 3,681.00 
133,622.40 


$ 42,801.58 
839,441.72 


$ 33,687.57 
894,174.80 


$ 9,114.01 

54,733.08 


$ 102,622.55 


$ 158,643.63 


$ 137,303.40 


$ 882,243.30 


$ 927,862.37 


$ 45,619.07 



346 



]Sr. C. Utilities Commission 



Power Companies- 
expenses- 





Direct 
Operating 


Uncol- 
lectibles 


Entire: 
Carolina Power and Light Co. - . . . - . 


$ 71,526.59 

1,032,561.63 

93,977.56 

1,433,285.13 


$ 


Southern Public Utilities Co.* . 


66 42 


Tide Water Power Co. . . 












Totals -- 


$ 2,631,350.91 


$ 66 .42 






North Carolina: 
Carolina Power and Light Co. - _ - _ 


$ 71,526.59 
757,376.38 
93,977.56 


$ 


Southern Public Utilities Co.* . - 


51 18 


Tide Water Power Co. - - - - . 








Totals - - 


$ 922,880.53 


$ 51.18 






South Carolina: 


$ 275,185.25 


$ 15 .24 






Virginia: 
Virginia Electric and Power Co. 


$ 1,433,285.13 


$ 







EXPENSES— 





Direct 
Operating 


Incol- 
lectible 


Entire: 


$ 158,075.82 
151,916.20 


$ 


Tiiirhcim PiiKlir' Sprvipp Co 








Tide Water Power Co. t 






Viro-inin F'.lpptrif' nnd Power Co 


1,126,201.75 








Totals - 


$ 1,436,193.77 


$ 






North Carolina: 
Carolina Power and Light Co. 


$ 158,075.82 
151,916.20 


$ 






Southern Public Utilities Co. t -- 




Tide Water Power Co. t - 












Totals - - -- - --- -- - 


S 309,992.02 


$ 






Virginia: 
Virginia Electric and Power Co. - _--_ .. -. 


$ 1,126,201.75 


$ 







♦Includes bus operations. flncluded in street railway operations. 
Note.— Boldface indicates deficit. 



Power Companies — Major — 1934 



347 



Major — 1934 — Continued 

STREET RAILWAYS 



Taxes 


Interest 


Retirement 
Reserve 


Total 
Expenses 


Total 
Revenue 


Profit 


$ 


14,860.47 
135,993.73 

14,171.08 
198,610.05 


$ 25,317.00 

87,190.58 

24,347.64 

325,208.07 


$ 10,272.00 

117,258.00 

3,709.16 

304,422.00 


$ 


121,976.06 
1,373,070.36 

136,205.44 
2,261,525.25 


$ 


102,919.60 

986,681.85 

110,994.46 

2,406,173.40 


$ 19,056.46 

386,388.51 

25,210.98 

144,648.15 


$ 


363,635.33 


$ 462,063.29 


$ 435,661.16 


$ 


3,892,777.11 


$ 


3,606,769.31 


$ 286,007.80 


$ 


14,860.47 
102,461.59 
14,171.08 


$ 25,317.00 
67,187.35 
24,347.64 


$ 10,272.00 

90,288.66 

3,709.16 


$ 


121,976.06 

1,017,365.16 

136,205.44 


$ 


102,919.60 
760,557.34 
110,994.46 


$ 19,056.46 

256,807.82 

25,210.98 


$ 


131,493.14 


$ 116,851.99 


$ 104,269.82 


$ 


1,275,546.66 


$ 


974,471.40 


$ 301,075.26 


$ 


33,532.14 


$ 20,003.23 


$ 26,969.34 


$ 


355,705.20 


$ 


226,124.51 


$ 129,580.69 


$ 


198,610.05 


$ 325,208.07 


$ 304,422.00 


$ 


2,261,525.25 


$ 


2,406,173.40 


$ 144,648.15 



BUSES 



Taxes 


Interest 


Retirement 
Reserve 


Total 
Expenses 


Total 
Revenue 


Profit 


$ 21,202.02 
' 9,168.82 


$ 53,236.68 
27,930.72 


$ 21,600.00 
16,320.00 


$ 254,114.52 
205,335.74 


$ 214,285.36 
192,088.09 


$ 39,829.16 
13,247.65 














290,457.70 


71,373.10 


66,811.20 


1,554,843.75 


1,649,737.35 


94,893.60 


$ 320,828.54 


$ 152,540.50 


$ 104,731.20 


$ 2,014,294.01 


1 2,056,110.80 


$ 41,816.79 


$ 21,202.02 
9,168.82 


$ 53,236.68 
27,930.72 


$ 21,600.00 
16,320.00 


% 254,114.52 
205,335.74 


$ 214,285.36 
192,088.09 


$ 39,829.16 
13,247.65 


























$ 30,370.84 


$ 81,167.40 


$ 37,920.00 


$ 459,450.26 


$ 406,373.45 


$ 53,076.81 


$ 290,457.70 


$ 71,373.10 


$ 66,811.20 


$ 1,554,843.75 


$ 1,649,737.35 


1 94,893.60 



348 



'N. C. Utilities Commission 



Power Companies— 

EXPENSES- 



Direct 
Operating 



Entire: 

Carolina Power and Light Co 

Durham Public Service Co 

East Tennessee Light and Power Co 

Southern Public Utilities Co 

Tide Water Power Co 

Virginia Electric and Power Co 

Totals 

North Carolina: 

Carolina Power and Light Co 

Durham Public Service Co 

Southern Public Utilities Co 

Tide Water Power Co 

Virginia Electric and Power Co 

Totals 

South Carolina: 

Carolina Power and Light Co 

Southern Public Utilities Co 

Totals 

Tennessee: 
East Tennessee Light and Power Co. 

Virginia: 
East Tennessee Light and Power Co. 
Virginia Electric and Power Co 

Totals 



719,683.36 
135,603.80 
113,276.63 
1,132,388.04 
130,795.09 
204,107.68 



2,435,854, 



520,490.94 
135,603.80 
805,777.76 
130,795.09 
18,474.34 





1,611,141.93 




199,192.42 
326,610.28 




525,802.70 




90,621.30 




22,655.33 
185,633.34 



208,288.67 



Note. — Boldface indicates deficit. 



Power Companies — Major — 1934 



349 



Major — 1934 — Continued 

MERCHANDISE 



Uncollectibles 


Taxes 


Total 
Expenses 


Total 
Revenue 


Profit 


$ 2,202.85 
2,400.00 


$ 35,662.89 
760 .39 


$ 757,549.10 
138,764.19 
113,276.63 
1,189,348.54 
132,236.23 
209,129.96 


$ 832,392.96 
140,968.09 
111,947.85 
1,362,743.02 
143,019.12 
251,113.80 


$ 74,843.86 
2,203.90 
1,328.78 


12,864.14 
1,430.19 
5,022.28 


44,096.36 
10.95 


173,394.48 
10,782.89 
41,983.84 








$ 23,919.46 


$ 80,530.59 


1 2,540,304.65 


$ 2,842,184.84 


1 301,880.19 


$ 1,667.14 
2,400.00 
9,159.57 
1,430.19 

448 .52 


$ 25,755.84 

760.39 

36,561.89 

10.95 


$ 547,913.92 
138,764.19 
851,499.22 
132,236.23 

18,922.86 


$ 599,479.85 
140,968.09 
972,300.99 
143,019.12 

22,425.83 


$ 51,565.93 

2,203.90 

120,801.77 

10,782.89 

3,502.97 








$ 15,105.42 


$ 63,089.07 


$ 1,689,336.42 


$ 1,878,193.88 


$ 188,857.46 


$ 535.71 
3,704.57 


S 9,907.05 
7,534.47 


$ 209,635.18 
337,849.32 


$ 232,913.11 
390,042.03 


$ 23,277.93 
52,592.71 


$ 4,240.28 


S 17,441.52 


$ 547,484.50 


$ 623,355.14 


$ 75,870.64 


$ 


% 


$ 90,621.30 


$ 89,558.28 


$ 1,063.02 








$ 


$ 


$ 22,655.33 
190,207.10 


$ 22,389.57 
228,687.97 


$ 265 76 


4,573 76 




38,480 87 








$ 


$ 


$ 212,862.43 


$ 251,077.54 


$ 38 215 11 









350 



^N". C. Utilities Commission 



Power Companies — 
balance sheet— 





Fixed Capital 


Cash 


Notes 
Receivable 


Carolina Power and Light Qp. . - 


$ 91,776,111.61 

127,148,402.95 

3,311,604.03 

5,358,791.41 

53,595,187.80 

11,463,377.31 

73,751,118.67 


$ 3,297,838.92 

7,581,271.67 

20,234.72 

12,614.96 

1,855,034.31 

98,097.25 

1,301,863.01 


$ 43,828.14 

279,428.73 

4,261.05 

41 987 26 


Duke Power Co. 


Durham Public Service Co. . . - - 


East Tennessee Light and Power Co. .- - -- - 


Southern Public Utilities Co. -- - -- 


7,879.85 
4,503.21 
13,622.98 


Tide Water Power Co. . - 






Totals - - - 


$366,404,593.78 


$ 14,166,954.84 


S 305 Rii 22 









Total 
Current 

Assets 


Investment in 
Affiliated 
Companies 


Miscfellaneous 
Investment 


Carolina Power and Light Co. 


1 6,267,565.30 
19,196,847.23 
601,945.25 
1,207,033.07 
5,457,085.57 
513,263.64 
3,472,240.55 


$ 90,269.67 
30,116,465.96 


$ 5 354 00 


Duke Power Co. . . . 


4 273 944 83 


Durham Public Service Co. 


37 712 12 


East Tennessee Light and Power Co. -. . - - 




14 848 50 


Southern Public Utilities Co. . . ------ 


1,047,206.85 

21,000.00 

1,007,227.91 


28 781 80 


Tide Water Power Co. - - 


23 372 24 


Virginia Electric and Power Co.. 


33 922 00 






Totals — . 


$ 36,715,980.61 


$ 32,282,170.39 


S 4,417,935.49 









Jobbing 
Accounts 


Clearing or 

Appor. 

Accounts 


Work in 
Progress 




$ 


$ 


$ 408,915.02 


Duke Power Co. -- 






16,009.72 








2,690.57 






1,243.27 

86.02 

569 .66 




Southern Public Utilities Co. - 




155,448.71 


Tide Water Power Co. ------ --- 


59.41 


787.86 














Totals -- 


$ 59.41 


$ 1,898.95 


$ 582,276.16 







Power Companies — Major — 1934 



51 



Major — 1934 — Continued 

ASSETS 



Accounts 
Receivable 


Interest and 
Dividends 
Receivable 


Marketable 
Securities 


Material 

and 
Supplies 


Prepayments 


Subscribers 

to Capital 

Stock 


Miscellaneous 
Current 
Assets 


$1,777,666.83 
1 fiin 174 85 


$ 3,068.59 

334,696.37 

1,858.67 

240.20 

2,635.64 

239 .80 

19,679.31 


$ 486,390.63 
7,451,824.82 


$ 614,424.05 
1,907,939.09 
55,822.79 
67,024.28 
743,669.01 
111,147.59 
818,225.66 


$ 13,220.19 
31,511.70 
47,615.53 
6,851.86 
23,650.98 
9,846.06 
73,168.16 


$. 


$ 31,127.95 






455 297 56 




16,854.93 


262 762 26 






815,552.25 


2,731,660.08 
233,244.23 


92,555.70 








56,185.50 


1,245,681.43 














$8,316,487.24 


S 362,418.58 


$8,030,771.15 


$4,318,252.47 


$ 205,864.48 


$ 


$ 919,720.63 







Sinking 
Funds 


Replace- 
ment 
Funds 


Miscellaneous 
Special 
Funds 


Special 
Deposits 


Total 
Miscellaneous 

Assets 


Unamortized 

Debt Dis. and 

Expense 


Property 
Aban- 
doned 


$. 


$ 


$ 


$ 11,230.00 


$ 106,853.67 

34,390,410.79 

37,712.12 

294,694.18 

1,135,904.71 

44,897.24 

5,180,856.74 


$ 700,888.31 
1,672,790.28 
220,340.79 
229,468.38 
718,215.92 
613,846.61 
1,977,262.65 


$ 




















104 774 05 




8,666.82 
47,567.25 


166,404.81 

5,959.13 

525.00 

447,589.03 




6 389 68 












3 692 117 80 
















$3,803,281.53 


$ 


$ 56,234.07 


$ 631,707.97 


$ 41,191,329.45 


$6,132,812.94 


$ 









Miscellaneous 

Deferred 

Debits 


Total 

Deferred 

Debits 


Discount 

on Capital 

Stock 


Reacqviired 
Securities 


Treasury 
Securities 


Total 
Assets 


Mis- 
cellaneous 


$ 5 333 50 


$ 1,115,136.83 
1,688,903.86 
240,932.72 
230,711.65 
899,430.34 
691,884.76 
2,027,015.33 


$ 


$ 134,024.57 


$ 


$ 99,399,691.98 

182,424,564.83 

4,193,499.12 

7,152,230.31 

61,466,978.42 

12,765,554.95 

106,633,731.29 


$ 


103 86 








17,901.36 








1,305.00 








61,000.00 

325,000.00 

52,132.00 

15,743,500.00 




25,679.69 




54,370.00 




78 196 94 






49,752.68 




6,459,000.00 










$ 176 968 03 


$ 6,894,015.49 


$ 


$6,647,394.57 


$ 16,181,632.00 


$474,036,250.90 


$ 1 305 00 









352 



1^. C. Utilities Commission 



Power Companies — 

BALANCE SHEET— 





Capital 
Stock 


Premium on 
Capital 

Stock 


Capital 

Stock 

Subscribed 


Carolina Power and Light Co. -. .- 


$ 43,315,741.62 

101,288,708.70 

1,000,000.00 

1,973,875.00 

21,000,000.00 

3,389,890.00 

34,353,945.35 


$- 


$- 


Duke Power Co. . - - 






Durham Public Service Co. - .-- - .- 












Southern Public Utilities Co. - _ .. ..- 






Tide Water Power Co. .-. . - .. 


















Totals ..- - .- . -- --. - -- --- 


$206,322,160.67 


S 


$- 











Miscellaneous 

Current 

Liabilities 


Total 

Current 

Liabilities 


Taxes 
Accrued 


Carolina Power and Light Co. 


$ 3,084.34 


$ 746,548.38 
1,375,022.64 
142,627.72 
32,039.66 
1,812,358.51 
211,506.84 
612,833.07 


$ 857,017.92 


Duke Power Co. 


768,638.59 


Durham Public Service Co. 


2,605.62 


14,310.02 


East Tennessee Light and Power Co. - 


35,480.64 


Southern Public Utilities Co. 


138,730.50 

867.93 

32,772,89 


2,847,920.09 


Tide Water Power Co. 


72,694.14 


Virginia Electric and Power Co.- 


452,374.58 






Totals 


% 178,061.28 


$ 4,932,936.82 


$ 2,485,307.98 









Sinking 

Fund 
Reserve 


Contribution 

for 

Extension 




$ :.. 


$. 


Duke Power Co. . 




500.00 






16,540.69 






19,245.02 


Southern Public Utilities Co.. ...... . 




98,130.24 


Tide Water Power Co. 


















Totals. . ..... . . .. ... .. . 


$ 


$ 132,415.95 









PowEK Companies — Major — 1934 



353 



Major — 1934 — Continued 

LIABILITIES 



Long- 
Term 
Debt 


Receivers' 
Certificates 


Notes 
Payable 


Accounts 
Payable 


Consumers' 
Deposits 


Matured 
Interest 
Unpaid 


Dividend 
Declared 


$ 46,000,000.00 


$. 


$ 65,840.00 


$ 167,769.12 
462,521.89 
43,792.75 
10,117.39 
620,974.48 
116,469.51 
314,977.39 


$ 186,415.67 


$ 9,630.00 
150,000.00 


$ 313,809 25 


40,000,000.00 




762,500.75 


2,376,100.00 




11,026.80 


55,702.55 
17,969.77 

531,653.53 
75,940.40 

265,082.79 


29,500.00 


2,792,000.00 






3,952.50 


20 924,000.00 




311,000.00 
6,300.00 




210,000 00 


6 300 000.00 






11,929 00 


59 450 500 00 


















$177,842,600.00 


$ 


$ 394,166.80 


$1,736,622.53 


$1,132,764.71 


$ 159,630.00 


$ 1,331,691.50 



Interest 
Accrued 


Miscellaneous 
Accrued 
Liabilities 


Total 
Accrued 
Liabilities 


Advances 
from Aff. 
Companies 


Retirement 
Reserve 


Casualty 
and Ins. 
Reserve 


Unam. 

Pre. on 

Debt 


$ 623,920.11 


$ 88,837.96 


$1,569,775.99 
768,638.59 
53,020.17 
46,365.34 
431,132.56 
220,933.13 
767,241.32 


$ 


$ 3,613,643.33 

31,612,075.68 

303,234.12 

186,566.50 

12,447,299.09 

1,182,167.57 

5,859,089.15 


$ 234,056.02 
673,260.46 
28,375.34 


$- 




453,500.00 




33,026.93 


5,683.22 

10,884.70 

25.13 






1,363,224.69 


■ 


146,315.34 


1,416,861.12 
14,012.53 




148,238.99 






283,243.62 


31,623.12 














$1,234,744.99 


$ 137,054.13 


$3,857,107.10 


$1,816,724.69 


$ 55,204,075.44 


$2,366,565.47 


$ 



Con- 
tingency 
Reserve 


Mis- 
cellaneous 
Reserve 


Total 
Reserves 


Misc. 

Und. 

Credits 


Miscellaneous 


Profit 
and 
Loss 


Total 
Liabilities 


$ 


$ 594,907.83 

262,454.43 

47,552.67 

211,293.08 


$ 4,442,607.18 

32,548,290.57 

395,702.82 

417,104.60 

14,154,516.58 

1,258,326.72 

6,138,973.32 


$ 


$ 


$ 3,325,018.81 

5,990,294.92 

224,743.41 

527,621.02 

3,144,970.77 

192,945.49 

5,178,462.57 


$ 99 399 691 98 




109.41 




182,424,564 83 




1,305.00 


4,193,499.12 






7 152 230 31 


194,226 13 






61 466 978 42 




62,146.62 
279,884.17 


10,187.79 
131,775.66 


1,181,764.98 


12,765,554.95 




106,633,731.29 








$194,226.13 


$1,458,238.80 


$ 59,355,521.79 


$142,072.86 


$1,183,069.98 


$ 18,584,056.99 


$ 474,036,250.90 



354 



J^. C. Utilities Commission 



GAS STATISTICS — MAJOR POWER COMPANIES — 1934 

CAPACITY PLANT, M. C. F. 





Butane 


Coal Gas 
Benches 


Water Gas 

Sets 


Holder 




No. 


Capacity 


No. 


Capacity 


No. 


Capacity 


No. 


Capacity 


Southern Public Utilities Co.: 
Charlotte 






8 


800 


3 

1 

1 


1,660 

50 

660 

50 




940 


Burlington 






90 


Greensboro 






7 
3 


420 
180 


302 


High Point- - 






125 


Mount Airy . . 


1 


288 




Salisbury- . 


4 
6 


240 
360 








180 


Winston-Salem -.. 






1 


100 




275 










Totals— North Carolina 


1 


288 


28 


2,000 


7 


2,520 




1,912 


Tide Water Power Co.: 






3 


200 


2 
2 
2 
2 
2 
2 


800 
300 
500 
400 
400 
300 




270 








45 


Kinston 










115 












70 












130 


Washington 










57 














Totals — North Carolina 






3 


200 


12 


2,700 




687 











GAS MANUFACTURED, M. C. F. 








Coal 

Gas 

Produced 


Butane 
Produced 


Water 

Gas 

Produced 


Total 
Manu- 
factured 


Southern Public Utilities Co.: 
Charlotte -- 


181,500 




130,056 
22,793 
34,687 


311,556 


Burlington 




22,793 


Greensboro - - 


148,059 
53,060 




182,746 


High Point - - --- 




53,060 




3,525 




3,525 




43,266 
126,458 




43,266 


Winston-Salem 




189 


126,647 








Totals— North Carolina..- 


552,343 


3,525 


187,725 


743,593 






Tide Water Power Co.: 
Wilmington 


70,257 




36,058.4 
18,068.2 
34,363.3 
21,897.5 
28,206.0 
15,796.1 


106,315.4 


New Bern - 




18,068.2 


Kinston ------- 






34,363.3 


Fayetteville - 






21,897.5 


Goldsboro - 






28,206.0 


Washington - --. -. 






15,796.1 










Totals — North Carolina 


70,257 




154,389.5 


224,646.5 









Gas Statistics — Major Power Companies — 1934 



355 



Gas Statistics — Major Power Companies — 1934 — Continued 

GAS SOLD, USED. AND UNACCOUNTED FOR, M. C. F. 





Sold 


Used by 
Company 


Unaccounted 
for 


Southern Public Utilities Co.: 
Charlotte 


261,866 
19,813 

136,319 
43,329 
2,801 
34,725 
94,953 


865 
523 
2,092 
575 
323 
492 
201 


48,825 
2 457 


Burlington -_ _ 


Greensboro - - 


44 335 


High Point . -.--..- 


9 156 


Mount Airy . . 


402 


Salisbury . _ _ . _ _ . 


8,050 
31,493 








Totals — North Carolina 


593,806 


5,071 


144,718 




Tide Water Power Co.: 
Wilmington 


91,758.2 
13,592.9 
23,709.6 
18,008.4 
22,423.4 
10,708.7 


3,276.7 
341.9 
325.9 
148.8 
252.2 
166.8 


11 280 5 


New Bern . ---... ._ . . 


4 133 4 


Kinston - - - _-. 


10 327 8 


Fayetteville 


3,740 3 


Goldsboro 


5,530.4 
4,920 6 








Totals — North Carolina 


180,201.2 


4,512.3 


39,933.0 





COAL AND OIL USED, COKE AND TAR PRODUCED, MILES MAINS, NUMBER CUSTOMERS 





Coal 
Car- 
bonized 


Oil 
Used 


Coke 
Pro- 
duced 


Tar 
Pro- 
duced 


Miles 
Mains 


Number 

Cus- 
tomers 


Southern Public Utilities Co.: 
Charlotte 


14,408 


432,240 
73,563 
112,455 


11,076 


216,045 


97.81 
24.13 
99.22 
35.19 
6.88 
37.50 
96.53 


6,620 

624 

4 280 






11,998 
4,691 


7,403 
2,936 


147,992 
58,099 


High Point 


1,387 
106 








3,439 
10,457 




2,456 
6,687 


34,395 
126,462 


Winston-Salem . . . . . 


620 


2 835 






Totals — North Carolina . . 


44,993 
5,978.51 


618,878 

124,742 
61,711 

113,247 
75,630 
87,964 
52,789 


30,558 
3,518.34 


582,993 


397.36 


17,253 




Tide Water Power Co.: 


$ 60,195 
2,909 

10,768 
8,196 

11,179 
5,156 


66.63 
12.10 
19.82 
19.34 
21.54 
13.46 


3,170 
591 
675 
627 
696 
525 




































Totals— North Carolina 


5,978.51 


516,083 


3,518.34 


98,403 


152.89 


6,284 





356 



^. C. Utilities Commission 



STREET RAILWAY AND BUS STATISTICS — NORTH 
CAROLINA — 1934 





Buses 


Street Railways 




No. 
Buses 

Op- 
erated 
Daily 


No. 

Passengers 

Carried 

Daily 


Length 

of 
Route 


No. 
Cars 
Op- 
erated 
Daily 


No. 

Passengers 

Carried 

During 

Year 


Length 

of 
Route 


Carolina Power and Light Co.: 
Asheville 


12 
12 

17 

2 
14 
8 
5 


1,110,114 
2,996,121 

2,285,117 

30,810 

1,201,869 

1,334,273 

342,517 


34.0 

28.6 

35.92 

4.0 
32.4 
22.5 

9.7 








Raleigh . . 








Durham Public Service Co.: 








Southern Public Utilities Co.: 


37 
14 
17 


5,714,490 
1,271,625 
1,287,735 


25.19 




8.46 




12.56 


High Point 


4 42 




4 
15 


326,989 
1,087,353 


4.31 


Tide Water Power Co.: 
Wilmington 


1 


44,731 


6.0 


21 40 






Totals 


71 


9,345,552 


173.12 


87 


9,688,192 


76.34 







MAJOR POWER COMPANIES— STATISTICS— ENTIRE— 1934 

CAPITAL STOCK, DIVIDENDS PAID, LONG-TERM DEBT, VALUE PLANT 





Common 
Stock 
Value 


Preferred 
Stock 
Value 


Dividends 
Paid on 
Common 


Long 
Term 
Debt 


Value 
Plant 


Carolina Power and Light Co. -.- 
Duke Power Co. 


$ 24,234,441 

100,993,908 

700,000 

223,875 

21,000,000 

1,004,090 

14,824,245 


$19,081,300 

294,800 

300,000 

1,750,000 


$ 


$ 46,000,000 

40,000,000 

2,376,100 

2,792,000 

20,924,000 

6,300,000 

59,450,500 


$ 91,776,111 


3,787,680 
17,500 


127,148,402 


Durham Public Service Co - 

East Tenn. Light and Power Co.. 
Southern Public Utilities Co. - 


3,311,604 
5,358,791 


840,000 


53,595,187 


Tide Water Power Co. - .. 


2,385,800 
19,529,700 


11,463,377 


Virginia Electric and Power Co... 


697,041 


73,751,118 


Totals 


$ 162,980,559 


$43,341,600 


$ 5,342,221 


$ 177,842,600 


$ 366,404,590 







Electric Companies — Minor — 1934 



357 



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Philadelphia, Pa. 


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Chicago, 111. 
New York, N.Y. 


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358 



]Sr. C. Utilities Commission 





64,800 

262,361 

9,119,412 


11,039,647 
60,336 
7,890 
14,108 




4,287 

8,580 

2,915 

27,326 

13,713 

60,520 

46,216 

4,368 

80,000 

12,822,805 

1,850,505 


116,644 

439,600 

17,400 

3,161 


828,504 
336,416 
498,025 


^' 




05 


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4,900 

4,287 

8,580 

2,915 

68,680 

34,900 

60,520 

46,216 

4,368 

164,417 

14,966,933 

2,696,800 


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4,900 

4,287 

8,580 

2,915 

68,680 

34,900 

60,520 

46,216 

4,368 

53,417 

1,824,000 

180,600 


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359 



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360 



^. C. Utilities Commissiox 



Electric Companies — Minor — 1934 — Continued 



REVENUE 



Electric 



cellaneous 



Non- 
Operating 



Total 



Bath Electric Co 

Burke Electric Utilities Co 

Carolina Mountain Power Co 

Casalina Utilities Co 

Catawba Valley Light and Power Co.. 

Cold Water Light and Power Co 

Crisp Power Co. 

Grouse Electric Co 

Danbury Light and Power Co 

Dillsboro and Sylva Electric Light Co. 
Earp Power, Light and Telephone Co.. 

East Side Electric Co 

Farm Light Co 

Guilwood Light and Power Co 

Hardy, C. L., Power Co 

Huntersville Light and Power Co 

Laurel Hill Electric Co 

Loray Light and Power Co 

Mays Chapel Light and Power Co 

Mountain Retreat Association 

Nantahala Power and Light Co 

Northwest Carolina Utilities Co 

Palmtree Mutual Light Co 

Pinehurst , Inc 

Roanoke Utilities Co 

Rocky River Power Co 

Rocky Ridge Power Co. 

St. James Light and Power Co 

Sandy Mush Light and Power Co 

Smoky Mountain Power Co.. 

Southeast Public Utilities Co. 

Southern States Power Co 



Totals. 



397.70 
524.80 
735 .96 



22.35 
176.00 



826.13 



$ 4,397.70 

9,547.15 

51,738.09 



831 .23 
815 .06 
767 .48 
347.67 
535 .25 



186.78 
140 .52 
501.77 
349 .65 
326.32 
960 .00 
507 .53 
500 .00 
218.40 
977.76 
572 .86 
995.46 



14,933.17 
21.75 



4,552.46 



413.07 
491.93 
594 .00 
959 .00 
316.10 



120.34 



223 .75 



931 .01 
967.09 
351.51 



496.18 

93.62 

1,275.67 



149,831.23 

2,815.06 

767.48 

1,347.67 

535 .25 



186 .78 
140 .52 
501 .77 
349 .65 
,326.32 
960 .00 
,507.53 
,500.00 
218.40 
,977.76 
,058.49 
,811.90 



39,533.41 

13,491.93 

6,817.75 

1,959.00 

316.10 



30,427.19 

21,873.47 
27,627.18 



$599,215.91 



$ 17,175.59 



$ 6,173.28 



,564.78 



Electeic Companies — Minor — 1934 



361 



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Ph 

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$ 2,694.53 
296.61 
887.48 

33.841.51 


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'^^^ 'N. C. Utilities Commission 

ELECTRIC COMPANIES — MINOR — 1934 

TOWNS SERVED 

Bath Electric Company Bath — Rural, Washington to Bayview. 

Burke Electric Utilities Company Glen Alpine, Bridgeport. 

Carolina Mountain Power Company. Lake Lure, Chimney Rock, Bat Cave. 

Casolina Utilities Company 

Catawba Valley Light & Power Co Morganton, Drexell. 

Cold Water Light & Power Co Rural. 

Crisp Power Company _ Crisp, Macclesfield — Rural. 

Crouse Electric Company Grouse — Rural. 

Danbury Light & Power „ Danbury. 

Dillsboro & Sylva Electric Light Co 

Earp Power, Light & Telephone Co Rural. 

East Side Electric Company Rural. 

Farm Light Company Rural. 

Guilwood Light & Power Co Rural. 

Hardy, C. L., Power Co Maury — Rural. 

Huntersville Light & Power Co Rural. 

Laurel Hill Electric Company Laurel Hill. 

Loray Light & Power Company Rural. 

Mays Chapel Light & Power Co Rural. 

Mountain Retreat Association Montreat. 

Nantahala Power & Light Co Top ton. Marble, Topoco, Franklin, Cashiers. 

(Wholesale to Dillsboro Electric Co. and Town of 
Highlands. ) 

Northwest Carolina Utilities Co Burnsville, Mars Hill, Marshall, Blowing Rock, West 

Jefferson, Jefferson, Bakersville, Tocane, Warrens- 
ville. Lancing, Celo, Bald Creek. 

Palmtree Mutual Lighting Co 

Pinehurst Inc „.Pinehurst. 

Roanoke Utilities Company Manteo, Wanchese, Nag's Head. 

Rocky River Power Company Sold to Carolina Power & Light Co. 

Rocky Ridge Power Company Rural. 

St. James Light & Power Co Rural. 

Sandy Mush Light & Power Co 

Smoky Mountain Power Co Bryson City. 

Southeast Public Utilities Co Albemarle. 

Southern States Power Co Murphy, HayesviUe, Peachtree. 



PowEE Companies — Major — 1934-1935 363 



POWER COMPANIES — MAJOR — 1934-1935 



CAROLINA POWER AND LIGHT COMPANY, RALEIGH, N. C. 

Organized: April 6, 1926. 

President: L. V. Sutton, Raleigh. 

Secretary: C. J. Curry, Raleigh. 

Service: Electric, Street Railway and Bus. 

States Served: North Carolina, South Carolina. 

DUKE POWER COMPANY, CHARLOTTE, N. C. 

Organized: May 1, 1917. 

President: G, G. Allen, New York. 

Secretary: W. C. Parker, New York. 

Service: Electric. 

States Served: North Carolina, South Carolina. 

DURHAM PUBLIC SERVICE COMPANY, DURHAM, N. C. 

Organized: January 29, 1901. 
President: Henry L. Doherty, New York. 
Secretary: A. W. Grady, Durham, N. C. 
Service: Electric, Bus. 
State Served: North Carolina. 

EAST TENNESSEE LIGHT AND POWER COMPANY, BRISTOL, TENNESSEE-VIRGINIA 

Organized: March 9, 1927. 

President: H. L. Doherty, New York (1934). 

Vice-President: R. E. Burger (1935). 

Secretary J. C. York, Bristol, Tennessee. 

Service (For North Carolina) : Electric. 

States Served: Tennessee, Virginia, North Carolina. 

SOUTHERN PUBLIC UTILITIES COMPANY, CHARLOTTE, N. C. 

Organized: March, 1913. 

President: E. C. Marshall, Charllotte, North Carolina. 

Secretary: W. C. Parker, New York. 

Service : Electric, Gas, Water, Street Railway and Bus. 

States Served: North Carolina, South Carolina. 

(Consolidated with Duke Power Company May 1, 1935.) 

TIDE WATER POWER COMPANY, WILMINGTON, N. C. 

Organized: February 26, 1907. 

President: F. A. Matthes, Wilmington, North Carolina. 

Secretary: L. D. Latta, Wilmington, North Carolina. 

Service: Electric, Gas, Water, Street Railway. 

State Served: North Carolina. 

VIRGINIA ELECTRIC AND POWER COMPANY, RICHMOND, VIRGINIA 
Organized: June 29, 1909. 

President: J. C. Holtzalaw, Richmond, Virginia. 
Secretary : W. T. Crawford, New York. 
Service (For North Carolina) : Electric. 
States served: Virginia, North Carolina. 



364 N". C. Utilities Commission 

ELECTRIC COMPANIES — MAJOR— 1935 

CITIES AND TOWNS SERVED 



CAROLINA POWER AND LIGHT COMPANY 
Wholesale, North Carolina : 

Apex, Clayton, Fayetteville, Fremont, La Grange, Laurel Hill, Laurinburg, Lumberton, 
Pikeville, Pinehurst, Selma, Smithfield, Wake Forest, Waynesville. 

Wholesale South Carolina : 
Bennettsville, Camden. 

Retail, North Carolina : 

Aberdeen, Alma, Angier, Ansonville, Arden, Asheboro, Asheville, Auburn, Autryville, 
Bahama, Bailey, Bald Creek, Balsam, Bernardsville, Biscoe, Black Mountain, Bladenboro, 
Bonlee, Bonnie-Doone, Brickton, Broadway, Buies Creek, Bunn, Bynum, Cameron, Candler, 
Candor, Canton, Carpenter, Carthage, Cary, Castalia, Clinton, Clyde, Coats, Craggy, 
Democrat, Duncan, Dunn, Ellerbe, Enka, Ether, Eurega, Fairmont, Fairview, Falcon, 
Fletcher, Four Oaks, Franklinton, Franklinville, Fuquay Springs, Garner, Gibson, Godwin, 
Goldsboro, Goldston, Gulf, Hamlet, Hazelwood, Helena, Hemp, Henderson, Hoffman, Holly 
Springs, Hope Mills, Hot Springs, Inanda, Jackson Springs, Johns, Jonesboro, Jupiter, 
Kenly, Kittrell, Knightdale, Lake Junaluska, Lakeview, Laura Mills, Leasburg, Ledger, 
Leicester, Liberty, Lilesville, Lillington, Littleton, Lumber Bridge, Macon, Manchester, 
Manly, Marston, Maxton, Merry Oaks, Micro, Middlesex, Millbrook, Milton. Momeyer, Mon- 
cure, Morrisville, Morven, Mt. Gilead, Mt. Olive, Mt. Vernon, Nashville, New Hill, Niagara, 
Norilina, Orrum, Oxford, Parkton, Peachland, Pembroke, Pinebluff, Pine Level, Pittsboro, 
Plumtree, Polkton, Princeton, Proctorville, Raeford, Raleigh, Ramseur, Red Oak, Ridgeway, 
Rockingham, Rolesville, Roseboro, Rougemont, Rowland, Roxboro, Salemburg, Sanford, 
Seagrove, Semora, Siler City, Sims, Skyland, Southern Pines, Spring Hope, Spruce Pine, 
Staley, Stanhope, Star, Stedman, Stem, Stockville, Stovall, Swannanoa, Swiss, St. Paul's, 
Troy, Vander, Vass, Vaughn, Wade, Wadesboro, Wagram, Warren Plains, Warrenton, 
Weaverville, Wendell, West End, Willow Springs, Wilson's Mills, Wise, Woodfin, Yancey- 
ville, Youngsville, Zebulon. 

Retail, South Carolina: 

Andrews, Bethune, Bishopville, Blaney, Blenheim, Cades, Cheraw, Chesterfield, Clio, 
Darlington, Dillon, Dovesville, Elliot, Florence, Greeleyville, Hartsville. Hemingway, Jeffer- 
son, Johnsonville, Kingstree, Lake View, Lake City, Lamar, Lane, Latta, Little Rock, 
Lugoff, Lynchburg, Manning, Marion, Mayesville, MuUins, McBee, McColl, Mt. Croghan, 
Nichols, Olanta, Pageland, Pamlico, Paxville, Pinewood, Ruby, Scranton, Society Hill, 
Summerton, Sumter, Tatum, Timmonsville, Turbeville. 



DUKE POWER COMPANY 

Wholesale, North Carolina: 

Albemarle, Benton Heights, Cherryville, Concord, Cornelius, Dallas, Davidson, Drexell, 
Forest City, Gastonia, Granite Falls, High Point, Huntersville, Kings Mountain, Landis, 
Lexington, Lincolnton, Maiden, Monroe. Morganton, Newton, Shelby, Statesville. 

Wholesale South Carolina: 

Abbeville, Donalds, Due West, Easley, Greenwood, Greer, Gaffney, Laurens, Newberry, 
Ninety-Six, Prosperity, Rock Hill, Seneca, Westminister, 

DURHAM PUBLIC SERVICE COMPANY 

Retail, North Carolina : 
Durham, Creedmoor. 



Electric Companies — Major — 1935 365 



DUKE POWER COMPANY 

Retail, North Carolina: 

Charlotte, Matthews, Indian Trail, Waxhaw, Winston-Salem, Kernersville, King, Pinnacle, 
Rural Hall, Welcome, Thomasville, Belmont, Mt. Holly, Stanley, Goodsonville, Hickory, 
Icard, Hildebran, Connelly Springs, Rutherford College, Valdese, Conover, Claremont, 
Catawba, China Grove, Midway, Mt. Pleasant, Salisbury, Spencer, East Spencer, Rockwell, 
Denton, Cleveland, Cooileemee, Mocksville, Harmony, New London, Oakboro, Mt. Airy, 
Pilot Mountain, Elkin, Ronda, Yadkin County System, Marshville. Wingate, Taylorsville, 
Hiddenite, Troutman, North Wilkesboro, Wilkesboro, Madison, Stoneville, Walnut Cove, 
Hendersonville, Tuxedo, Saluda, Tryon, Columbus, Mill Springs, Brevard, Bessemer City, 
Grover, Gastonia, Mooresville, EUenboro, Mooresboro, Lattimore, Boiling Springs, Marion, 
Old Fort, Hillsboro, Spindale, Rutherfordton, Shelby, Norwood, Leaksville-Spray, Greens- 
boro and vicinity, Burlington and vicinity. High Point and vicinity, Lenoir, Reidsville, Glen 
Alpine, Bridgeport, Oakridge. 

EAST TENNESSEE LIGHT AND POWER COMPANY 
Retail, North Carolina: 

Newland, Elk Park, Montizuma, Linville, Pinola, Heaton, Cranberry, Minneapolis, Frank, 
Senia. 



TIDE WATER POWER COMPANY 
Wholesale, North Carolina: 
Hookerton. 

Retail, North Carolina: 

Abbottsburg, Acme, Alliance, Arapahoe, Armour, Ashton, Atkinson, Audubon, Bayboro, 
Beaufort, Belgards, Beulaville, Bolton, Bowdens. Bridgeton, Brunswick, Burgaw, Calypso, 
Carolina Beach, Cash Corner, Castle Hayne, Caswell, Catherine Lake, Cerro Gordo, Chad- 
bourn, Charity Crossing, Chinquapin, Clarkton, Claybrick, Cove City, Currie, Deep Run, 
Delco, Delgado, Dover, Dublin, Eagle Island, East Wilmington, Elizabethtown, Evergreen, 
Fair Bluff, Faison, Falling Creek, Fayetteville, Freeman, Garden City, Garland, Goldsboro, 
Graingers, Grantsboro, Grifton, Hallsboro, Hallsville, Harbor Island, Hubert, Ingold, 
Institute, Jacksonville, James City, Jason, Kellum, Kenansville, Kinston, Kure's Beach, 
Lake Waccamaw, Leland, Long Creek, Magnolia, Masonboro, Maysville, Morehead City, 
Tabor, Navassa, New Bern, Newport, Oleander, Oriental, Pink HiU, PoUocksviUe, Red 
Bug, Reelsboro, Richlands, Rocky Point, Rooks, Rose Hill, St. Helena, Seagate, Seven 
Springs, Silverdale, Snow Hill, Stonewall, Sunset Park, Swanboro, Teacheys, Trenton, 
Turkey, Vandemere, Wallace, Wananish, Warsaw, Washington, Watha, Washington Park, 
White Lake, Whiteville, Wildwood, Willard, Wilmington, Wilmington Beach. Winter Park, 
Winter Park Gardens, Woodburn, Wrightsboro, Wrightsville, Wrightsville Beach. 

VIRGINIA ELECTRIC AND POWER COMPANY 

Wholesale, North Carolina : 

Enfield, Edenton, Elizabeth City, Hertford, Scotland Neck, Tarboro. 

Retail, North Carolina: 
Ahoskie, Aulander, Battleboro, Belmont, Bethel, Columbia, Caledonia, Camps Store, Cherry, 
Cofield, Colerain, Coneto, Conway, Creswell, Dardens, Everetts, Earlys Station, Garysburg, 
Gatesville, George, Halifax, HarrelsviUe, Jackson, Jamesville, Kelford, Lewiston, Lawrence, 
Leggets, Margarettsville, Milwaukee, Murfreesboro, Moyock, Nixonton, Pljrmouth, Parmele, 
Pendleton, Potecasi, Powellsville, Rich Square, Roanoke Rapids, Roper, Roxobel, Seaboard, 
Severn, Salem Church, South Mills, South Rosemary, Speed, Sunbury, Tarboro, Travis, 
Union, Weeksville, Weldon, Whitakers, Williamston, Winfall, Winton, Woodland, Woodville. 



366 



IST. C. Utilities CoMMissioisr 



POWER COMPANIES 




Caprritij 




Hydro 


Entire: 
Carolina Power and Light Co. . . 


206 050 


Duke Power Co. ... 




Duke Power Co - . 


500 168 


Durham Public Service Co.. . 




East Tennessee Light and Power Co. 


3,875 


Southern Public Utilities Co 




Tide Water Power Co. - 






29,620 






Totals 


739,713 






North Carolina: 
Carolina Power and Light Co. . .. 


206 050 


Duke Power Co. - 




Duke Power Co. 


176,788 


Durham Public Service Co. 






75 


Southern Public Utilities Co. 




Tide Water Power Co. 






5,720 






Totals - --. ... . 


388,633 






South Carolina: 




Duke Power Co 




Duke Power Co ..- . ... - --. 


323,380 


Southern Public Utilities Co. - - . - - -- - - 








Totals 


323,380 






Tennessee: 
East Tennessee Light and Power Co. . . . - -. -. . 


3,800 






Virginia: 


23,900 







PowEK Companies — Major — 1935 



367 



MAJOR - 


-1935 








Plants-K. V. A. 


Energy Generated 


Steam 


Total 


Hydro 


Steam 


Total 


43,000 


249,050 


699,039,255 
407,522,520 
836,677,659 


90,600 

68,390 

113,733,510 

9,260 


699,129,855 
407,590,910 


250,825 
3,100 


750,993 
3,100 
3,925 


950,411,169 
9,260 


50 


15,419,768 
89,366,065 


15,419,768 






89,366,065 


13,080 
127,502 


13,080 
157, 122 


2,758,709 
265,291,400 


2,758,709 


150,449,920 


415,741,320 


437,557 


1,177,270 


2,198,475,187 


381,951,869 


2,580,427,056 


43,000 


249,050 


699,039,255 
170,228,620 
335,701,159 


90,600 

68,390 

110,137,510 

9,260 


699,129,855 
170,297,010 


220,075 
3,100 


396,863 

3,100 

75 


445,838,669 
9,260 




850 
62,473,465 


850 






62,473,465 


13,080 


13,080 
9,312 


2,758,709 
4,350 


2,758,709 


3,592 


41,353,660 


41,358,010 


282,847 


671,480 


1,308,797,009 


113,068,819 


1,421,865,828 
















237,293,900 

500,976,500 

26,892,600 




237,293,900 


30,750 


354,130 


3,596,000 


504,572,500 
26,892,600 










30,750 


354,130 


765,163,000 


3,596,000 


768,759,000 


50 


3,850 


15,418,918 




15,418,918 








123,910 


147,810 


109,096,260 


265,287,050 


374,383,310 



368 



JSr. C. Utilities Commission 



Power Companies — 




Energy 




Purchased 

and 
Received 


Entire: 


360,417,505 
140,381,621 


Duke Power Co.. 


Duke Power Co 


263,326,305 

27,691,200 

7,749,800 


Durham Public Service Co. 


East Tennessee Light and Power Co 


Southern Public Utilities Co. 


106,202,138 
51 396 980 


Tide Water Power Co. .. ... 


Virginia Electric and Power Co 


115 273 660 






Totals 


1,072,439,209 






North Carolina: 


192,855,805 


Duke Power Co 


117,742,321 


Duke Power Co 


123,590,605 




27,691,200 


East Tennessee Light and Power Co 




Southern Public Utilities Co 


85,043,458 


Tide Water Power Co 


51,396,980 


Virginia Electric and Power Co 








Totals 


598,320,369 






South Carolina: 
Carolina Power and Light Co.. . . . 


167,561,700 


Duke Power Co. ... .. .- .. 


22,639,300 


Duke Power Co .. 


139,735,700 


Southern Public Utilities Co. . 


21,158,680 






Totals .- .-- 


351,095,380 






Tennessee: 


7,749,800 






Virginia: 
East Tennessee Light and Power Co. . .. .. . - 




Virginia Electric and Power Co. .. . . 


115,273,660 






Totals 


115,273,660 







Note. — Boldface indicates Credit. 



Power Companies — Major — 1935 



369 



Major— 1935- 


-Continued 








Purchased and Transferred 


Energy Unaccounted for. Used by Company, Sold 


Transfer 


Grand Total 


Unaccounted for 


Used by Company 


Sold 




1,059,547,360 
547,972,531 
1,213,737,474 
27,700,460 
23,169,568 
195 568,203 
54,155,689 
531,014,980 


175,243,008 
75,674,911 
184,229,163 
2,460,801 
3,852,462 
15,903,139 
8,216,005 
73,336,719 


1,835,764 
3,191,551 

29,384,369 

1,187,486 

511,266 

1,687,795 

2,185,911 

30,899,805 


882,468,588 




469,106,069 




1,000,123,942 




24,052,173 




18,805,840 




177,977,269 




43,753,773 




426,778,456 








3,652,866,265 


538,916,208 


70,883,947 


3,043,066,110 






62,742,138 

71,851,855 

213,024,688 


954,727,798 
359,891,186 
782,454,962 

27,700,460 

341,350 

147,516,923 

54,155,689 
163,374,752 


151,169,718 

51,824,152 

123,641,387 

2,460,801 

138,510 

10,069,902 

8,216,005 

18,580,752 


1,316,852 

2,330,690 

22,848,113 

1,187,486 

850 

1,513,745 

2,185,911 

690,949 


802,241,228 

305,736,344 

635,965,462 

24,052,173 


340,500 


201,990 
135,933,276 




43,753,773 


122,016,742 


53,788,336 


, 469,976,923 


2,490,163,120 


366,101,227 


32,074,596 


2,001,672,582 


62,742,138 

71,851,855 

213,025,688 


104,819,562 
188,081,345 
431,282,512 
48,051,280 


24,073,290 

23,850,759 

60,587,776 

5,833,237 


518,912 

860,861 

6,536,256 

174,050 


82,227,360 
163,369,725 
364,158,480 

42,043,993 






347,619,681 


772,234,699 


114,345,062 


8,090,079 


649,799,558 


9,519,017 


13,649,701 


2,704,547 


510,416 


10,434,738 


9,178,517 


9,178,517 
367,640,228 


1,009,405 
54,755,967 




8,169,112 


122,016,742 


30,208,856 


372,990,120 




376,818,745 


55,765,372 




381,159,232 









370 



^N". C. Utilities Commission- 



Power Companies — 





Electric 
Revenue 


Gas 
Revenue 


Street 
Railway 
Revenue 


Entire: 
Carolina Power and Light Co. 


$ 9,501,932.46 

4,851,463.10 

14,483,411.16 

845,323.93 

614,889.77 

3,665,197.69 

1,264,605.03 

10,337,206.49 


$- 


$ 


Duke Power Co. 






Duke Power Co. 


790,842.52 


•638,868.85 








82,334.72 
393,680.15 
315,786.00 
900,951.42 






*345,293.96 


Tide Water Power Co 


103,101.21 


Virginia Electric and Power Co 


2 270 208 93 






Totals 


$45,564,029.63 


$ 2,483,594.81 


$ 3,357,472.95 






North Carolina: 
Carolina Power and Light Co. 


• 

$ 7,745,434.36 

3,317,026.47 

9,754,791.58 

845,323.93 

14,864.77 

2,796,963.15 

1,264,605.03 

853,204.48 


$ 


$ 


Duke Power Co 






Duke Power Co 


612,859.98 


*490,609.29 


Durham Public Service Co. 












304,104.69 
315,786.00 


241,705.77 


Tide Water Power Co. 


103,101.21 












Totals -- 


$ 26,592,213.77 


$ 1,232,750.67 


$ 835,416.27 






South Carolina: 


S 1,756,498.10 

1,534,436.63 

4,728,619.58 

868,234.54 


$... 


$ 


Duke Power Co 








177,982.54 
89,575.46 


148,259.56 


Southern Public Utilities Co. 


103,588.19 






Totals - 


$ 8,887,788.85 


$ 267,558.00 


% 251,847.75 






Tennessee: 


$ 330,013.75 


$ 45,284.10 


$ 






Virginia: 


$ 270,011.25 
9,484,002.01 


$ 37,050.62 
900,951.42 


$ 


Virginia Electric and Power Co 


2,270,208.93 






Totals 


$ 9,754,013.26 


$ 938,002.04 


$ 2,270,208.93 







"Includes bus. 



Power Companies — Major — 1935 



371 



Ma J OR — 1 9 3 5 — Continu ed 



Bus 
Revenue 


Water 
Revenue 


Ice 
Revenue 


Merchandise 
Revenue 


Total 
Operating 
Revenue 


Non- 
Operating 
Revenue 


Total 
Revenue 


$ 360,453.36 


$ 


$ 


$1,136,140.68 


$ 10,998,526.50 

4,851,463.10 

17,268,888.96 

1,300,097.83 

839,214.92 

4,709,262.55 

1,916,239.92 

15,416,961.38 


$ 32,356.82 

178,826.02 

355,441.28 

15,898.10 

66,899.65 

8,002.69 

7,664.37 

36,352.44 


$11,030,883.32 
5,030,289.12 


* 


95,101.80 




1,260,664.63 
167,817.97 
141,990.43 
259,666.01 
202,527.04 
189,652.08 


17,624,330.24 


180,940.18 


106,015.75 


1,315,995.93 
906,114.57 


* 


45,424.74 
30,220.64 




4,417,265.24 


* 




1,923,904.29 


1,718,942.46 




15,453,313.82 










$2,260,336.00 


$ 170,747.18 


$ 106,015.75 


$3,358,458.84 


$ 57,300,655.16 


$ 701,441.37 


$58,002,096.53 


% 360,453.36 


$. .. 


$ 


$ 823,895.46 


$ 8,929,783.18 
3,317,026.47 
11,812,001.90 
1,300,097.83 
14,864.77 
3,549,724.35 
1,916,239.92 
856,868.97 


$ 25,885.46 

116,236.13 

236,960.85 

15,898.10 


$ 8,955,668.64 








3,433,262.60 


* 


23,544.09 




930,196.96 
167,817.97 


12,048,962.75 


180,940.18 


106,015.75 


1,315,995.93 






14,864.77 


* 


11,219.80 
30,220.64 




195,730.94 

202,527.04 

3,664.49 


5,335.13 

7,664.37 


3,555,059.48 


* 




1,923,904.29 






856,868.97 












$ 541,393.54 


$ 64,984.53 


$ 106,015.75 


$2,323,832.86 


$ 31,696,607.39 


$ 407,980.04 


$32,104,587.43 


$- ' 


$. . - .- 


$... .. 


$ 312,245.22 


$ 2,068,743.32 
1,534,436.63 
5,456,887.06 
1,159,538.20 


$ 6,471.36 

62,589.89 

118,480.43 

2,667.56 


$ 2,075,214.68 








1,597,026.52 


* 


71,557.71 
34,204.94 




330,467.67 
63,935.07 


5,575,367.49 


* 




1,162,205.76 








$- 


$ 105,762.65 


$. . 


$ 706,647.96 


$ 10,219,605.21 


$ 190,209.24 


$10,409,814.45 








$ 


$ 


$... 


$ 78,094.73 


$ 453,392.58 


$ 36,794.80 


$ 490,187.38 










$ 


$ 


$ 


$ 63,895.70 
185,987.59 


$ 370,957.57 
14,560,092.41 


$ 30,104.85 
36,352.44 


$ 401,062.42 


1,718,942.46 






14,596,444.85 










$1,718,942.46 


$ 


$ 


$ 249,883.29 


$ 14,931,049.98 


$ 66,457.29 


$14,997,507.27 











372 



^. C. Utilities Commission 



Power Companies — 
expenses as to 





Electric 


Gas 


Street 
Railway 


Bus 


Water 


Entire: 
Carolina Power and Light 


$ 8,030,659.97 
4,220,283.78 
10,944,977.34 
787,039.82 
557,459.86 
3,111,408.55 
1,040,527.24 
7,593,175.92 


$ 


$ 


$ 382,529.84 


$ 


Duke Power Co .- 






Duke Power Co 


807,738.73 


*941,586.40 




89,597.56 




202,196.09 


E. Tenn. Light and Power. 


98,154.21 
387,455.90 
345,927.80 
801,030.92 






Southern Public Utilities... 


*487,534.11 

*121,683.71 

2,057,206.74 




43,913.59 


Tide Water Power Co 




25,122.22 


Va. Electric and Power Co.. 


1,782,451.98 








Totals... 


$ 36,285,532.48 


$2,440,307.56 


$3,608,010.96 


$2,367,177.91 


$ 158,633.37 






North Carolina: 


$ 6,415,772.97 

2,548,815.43 

6,834,975.21 

787,039.82 

13,756.24 

2,312,450.73 

1,040,527.24 

780,264.43 


$. 


$ 


$ 382,529.84 


$ 


Duke Power Co. 








Duke Power Co. 


584,594.01 


*703,387.70 




36,125 96 


Durham Public Service Co. 


202,196.09 




E. Tenn. Light and Power 








Southern Public Utilities 


277,989.33 
245,927.80 


*342,821.24 
*121,683.71 




18,555 18 


Tide Water Power Co. 




25,122.22 


Va Electric and Power Co. 
















Totals - ... 


$ 20,733,602.07 


$1,208,511.14 


$1,167,892.65 


$ 584,725.93 


$ 79,803.36 






South Carolina: 


$ 1,614,887.00 

1,671,468.35 

4,110,002.13 

798,957.82 


$ 


$ 


$ 


$. 


Duke Power Co. 










Duke Power Co 


223,144.72 
109,466.57 


*238,198.70 
*144,712.87 




53,471.60 


Southern Public Utilities . .. 




25,358.41 








Totals 


$ 8,195,315.30 


$ 332,611.29 


$ 382,911.57 


$ 


$ 78 830 01 








Tennessee: 
E. Tenn. Light and Power. 


$ 299,037.00 


$ 53,984.83 


$ 


$- 


$ 








Virginia: 
E. Tenn. Light and Power. 


$ 244,666.62 
6,812,911.49 


$ 44,169.38 
801,030.92 


$ 


$. 


$ 


2,057,206.74 


1,782,451.98 








Totals . 


$ 7,057,578.11 


$ 845,200.30 


$2,057,206.74 


$1,782,451.98 


$ 







*lncludes Bus. 

Note. — Boldface indicates deficit. 



Power Companies — Major — 1935 



373 



Major — 1935 — Continued 

CLASS OF SERVICE 



Merchandise 


Leased 
Property 


Ice 


Total 
Operating 


Non- 
Operating 
Expenses 


Total 

Expenses 


Net 
Income 


$1,055,343.83 


$. 


$ 


$ 9,468,533.64 

4,220,283.78 

14,520,500.50 

1,255,546.86 

796,211.62 

4,291,271.17 

1,729,471.61 

12,546,419.27 


$ 100.80 
7,549.85